VANCOUVER, Dec. 20, 2017 /CNW/ - Quantum Cobalt Corp. (CSE: QBOT; OTC: BRVVF; FRA: 23B) ("Quantum" or the "Company") announces that it has oversubscribed and closed its previously announced (dated October 11, 2017) non-brokered private placement (the "Private Placement"). The Company has proceeded with the overallotment option allowing to place up to an additional 50% of the total financing. The Company has closed 1,141,500 non flow-through Units ("Units") at a price of $1.00 per unit for gross proceeds of $1,141,500 and flow-through shares at a price of $1.20 per flow-through share for gross proceeds of $358,500. The Company closed total Gross proceeds of $1,500,000.
Each unit will comprise one common share of the company and one-half of one common share purchase warrant of the company. Each warrant will be exercisable into a common share of the company for a period of 12 months at an exercise price of $1.25 during the 12 months.
Each warrant is subject to accelerated expiry provisions, such that if at any time after the expiry of any resale restriction governing the subscribed shares, the corporation's common shares trade on the CSE at or above a volume-weighted average trading price of $1.50 per common share for 10 consecutive trading days, the company may give notice to the holders that each warrant will expire 30 days from the date of providing such notice.
In connection with the private placement, the Company has paid brokers' fees to certain brokers in the amount of 7 per cent of gross proceeds raised and common share purchase warrants entitling the brokers to purchase common shares of the company up to 7 per cent of the number of units sold in the private placement, having the same terms as the warrants.
The net proceeds from the non-brokered private placement are intended to be used for general working capital and property acquisitions.
