TORONTO, ON / ACCESSWIRE / February 27, 2017 / Vanadium One Energy Corp. (VONE.V) (9VR1.F) (the "Company"), is pleased to announce it has completed a non-brokered private placement financing (the "Financing") as previously announced on February 1, 2017 and February 22, 2017. Pursuant to the Financing, the Company issued 8,416,666 units ("Units") of the Company at a price of $0.12 per Unit to raise aggregate proceeds of up to $1,010,000. Each unit consists of one common share in the capital of the Company and one common share purchase warrant. Each full warrant will entitle its holder to purchase one additional common share at an exercise price of $0.25 for a period of 24 months from the closing date of the private placement.
All securities issued in connection with the Financing are subject to a four-month hold period from the date of issuance in accordance with applicable securities laws. A portion of the Financing constitutes a "related party transaction" under Multilateral Instrument 61-101 ("MI 61-101") as officers and directors of the Company participated in the Financing. The Financing is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to the closing of the Financing as the details of the participation of the related parties of the Company had not been confirmed at that time.
First Republic Capital Corporation ("First Republic") acted as the lead finder for the Financing. A cash fee was paid to finders representing 8% of the gross proceeds raised in the Financing. Additionally, finders received that number of compensation warrants ("Compensation Warrants") totaling 8% of the number of Units sold pursuant to the Financing. The Compensation Warrants are exercisable at a price of $0.12 per unit for a period of 24 months after the closing of the Financing. First Republic was paid a corporate finance fee representing 2% of the gross proceeds raised in the Financing and that number of Compensation Warrants equaling 2% of the number of Units sold in the Financing.
About Vanadium One Energy:
Vanadium One Energy is a mineral exploration company located in Burlington, Ontario, Canada. Our mandate is to acquire near-term production exploration mining projects and existing producers which focus specifically on "Energy Minerals" used in the rapidly growing Electro-Voltaic and Battery Storage Technology sector. Vanadium One Energy Corp. is managed by an experienced team of mining professionals with extensive operating and financial experience.
ON BEHALF OF THE BOARD OF DIRECTORS OF VANADIUM ONE ENERGY CORP.
W. John Priestner
President and Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Vanadium One Energy Corp.