Vancouver, British Columbia--(Newsfile Corp. - January 3, 2018) - M2 Cobalt Corp. (TSXV: MC.V) (the "Company") has closed its previously announced non-brokered private placement of subscription receipts (each, a "Receipt") for gross proceeds of $8,500,000. Market interest in the offering was strong and greatly exceeded the Company's minimum offering of $4,000,000. On closing of the offering, the Company issued 17,000,000 Receipts at a price of $0.50 per Receipt.
The proceeds of the offering are being held in escrow pending completion of the Company's acquisition of a series of seven exploration licenses in the Republic of Uganda (the "Transaction"). Upon completion of the Transaction, each Receipt will automatically convert into one unit of the Company. Each "unit" will consist of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire a further common share at a price of $0.80 per share for period of twenty-four months, subject to accelerated expiry in the event the common shares of the Company trade on the Exchange at a price of $1.40 or higher for ten consecutive trading days. The proceeds of the placement are intended to be used to advance exploration efforts in Uganda, and to satisfy working capital requirements of the Transaction.
Following conversion of the Receipts, the Company will pay certain agreed upon finders' fees to parties who introduced subscribers to the offering. The Receipts, and all securities issued upon conversion of the receipts, are subject to a four-month-and-one-day statutory hold period.
For further information concerning the Transaction and the licenses, readers are encouraged to review the Company's news releases of November 7th and 29th, copies of which are available under the Company's profile on SEDAR (www.sedar.com). Completion of the Transaction remains subject to approval of the TSX Venture Exchange (the "Exchange"). The Company is working diligently to complete the remaining filings with the Exchange, with a view to completing the Transaction in short order.
