TORONTO, ON--(Marketwired - June 23, 2017) - Cobalt 27 Capital Corp. (TSX VENTURE: KBLT) (the "Company" or "Cobalt 27") is pleased to announce the closing of its previously announced underwritten public offering (the "Offering") of 22,222,225 post-consolidated common shares ("Shares") at a price of $9.00 per Share (the "Offering Price"). The $200.0 million Offering consisted of 10.9 million Shares being issued for gross cash proceeds of $98.3 million and 11.3 million Shares being issued to acquire 1,205.6 tonnes of physical cobalt for a total cost of $101.7 million. At closing of the Offering, the Company used US$59.2 million or approximately $78.4 million of the net cash proceeds to concurrently purchase an additional 953.0 tonnes of physical cobalt for an aggregate of 2,158.6 tonnes of physical cobalt.
The Offering was completed through a syndicate of underwriters led by Scotiabank, Canaccord Genuity Corp., and TD Securities Inc. (the "Lead Underwriters") and includes BMO Nesbitt Burns Inc., GMP Securities L.P., Haywood Securities Inc., Cormark Securities Inc., Eight Capital, PI Financial Corp., Sprott Private Wealth Inc. and Numis Securities Inc., (collectively, with the Lead Underwriters, the "Underwriters"). In addition, the Company has granted the Underwriters an option, exercisable in whole or in part at any time until 30 days following the closing of the Offering, to purchase from the Company at the Offering Price up to an additional 15% of the number of Shares sold under the Offering.
In conjunction with closing of the Offering, the Company advises:
| 1. | Consolidation - As a condition of undertaking the Offering, the Company's common shares were consolidated on the basis of one new Share for every 20 shares previously outstanding immediately prior to closing. There is no change of name or trading symbol for the Company. The Company's new CUSIP number is 19075M309. Letters of transmittal describing the process by which shareholders may obtain new certificates representing their consolidated Shares will be mailed shortly to registered shareholders. |
| 2. | Change of Business - The Company has received TSX Venture Exchange approval to its change of business to be pure-play cobalt company. |
| 3. | Tier Change - The Company is now a Tier 1 issuer on the TSX Venture Exchange. |
| 4. | Resumption of Trading - Trading of the Company's shares will resume trading at the open on Friday, June 23, 2017, under the symbol: "KBLT". |
Following the closing of the Offering and the share consolidation, Cobalt 27 has a total of 23,881,394 Shares outstanding.
About Cobalt 27 Capital Corp.
Cobalt 27 Capital Corp. is an investment company that offers pure-play exposure to cobalt, an integral element in key technologies of the electric vehicle and battery energy storage markets. The Company intends to acquire and hold physical cobalt, as well as manage and grow a cobalt-focused portfolio of streams, royalties and direct interests in mineral properties containing cobalt.
For further information contact the Company at 416.504.3978 Ext 226 and please visit Cobalt 27's website at www.co27.com.
