By Devika Patel
Knoxville, Tenn., May 15 - Otis Gold Corp. announced it will raise C$1 million in a non-brokered private placement of units.
The company will sell 4 million units at C$0.25 each. Each unit consists of one common share and one warrant. Each two-year warrant is exercisable at C$0.35 in the first year and at C$0.55 thereafter.
The warrants have a forced conversion provision that comes into effect if the shares trade above a weighted average price of C$0.50 for any 20 consecutive trading-day period in the first year, or above C$0.75 for any 20 consecutive trading-day period in the second year. In the event of a forced conversion, the warrants will expire within 30 days.
Proceeds will be used for general working capital.
Otis Gold is a capital pool company in Vancouver, B.C.
| Issuer: | Otis Gold Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1 million
|
| Units: | 4 million
|
| Price: | C$0.25
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.35 in the first year, C$0.55 thereafter
|
| Agent: | Non-brokered
|
| Pricing date: | May 15
|
| Stock symbol: | TSX Venture: OOO
|
| Stock price: | C$0.24 at close May 15
|
| Market capitalization: | C$2.66 million
|
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