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NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES
Toronto, ON, Canada , April 12, 2022 (GLOBE NEWSWIRE) -- Canada Carbon Inc. (the "Company") (TSX-V : CCB) is pleased to announce a non-brokered private placement of up to 16,000,000 units (each, a “Unit”) at a price of $0.075 per Unit (the “Issue Price”) for aggregate gross proceeds of up to $1,200,000 (the “Offering”). Each Unit shall be comprised of one common share (each, a “Common Share”) in the capital of the Company and one common share purchase warrant (each, a “Warrant”). Each Warrant shall entitle the holder thereof to acquire one Common Share at a price of $0.9375 per Common Share for a period of 60 months from the date of issuance. The Company expects to close the Offering by the end of April, 2022.
“As Canada Carbon embarks on an effort to expand the number of applications for which its graphite is qualified, the proceeds of this offering will allow the Company to complete the requisite product qualification and metallurgical testing activity. Canada Carbon is poised to deliver exceptional value to shareholders as we demonstrate the full potential of the Company’s efforts bring the Miller and Asbury graphite deposits into production.”, said Ellerton Castor, Chief Executive Officer and a director of the Company.
All securities issued pursuant to the Offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. The proceeds from the Offering will be used by the Company for corporate and general working capital purposes. The closing of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.
In connection with the Offering, the Company may pay a finder’s fee to eligible arm’s length parties. The finder’s fee may consist of a cash fee equal to 6% of the gross proceeds raised under the Offering and compensation options (each, a “Compensation Option”) equal in number to 6% of the Units sold under the Offering. Each Compensation Option may be acquired at the Issue Price and will consist of one Common Share and one common share purchase warrant (each, a “Compensation Unit Warrant”). Each Compensation Unit Warrant shall entitle the holder to acquire one Common Share at a price of $0.9375 per Common Share for a period of 36 months from the date of issuance.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.