Azincourt Energy Announces Fully Subscribed C$7.6 Million Non-Brokered Private Placement
September 22 2021 - 1:38PM
AZINCOURT ENERGY CORP. (“Azincourt” or the
“Company”)
(TSX.V: AAZ), is pleased to announce a
fully-subscribed non-brokered private placement (the “Offering”)
for aggregate gross proceeds to the Company of approximately C$7.6
million from the sale of the following:
- units of the
Company (the “Units”) at a price of C$0.07 per Unit;
- flow-through
units of the Company (the “FT Units”) at a price of C$0.075 per FT
Unit; and
- FT Units to be
sold to charitable buyers (the “Charity FT Units”) at a price of
C$0.093 per Charity FT Unit.
Red Cloud Securities Inc. is acting as a finder
in connection with the Offering and the majority of the financing
is being placed with institutional investors.
Each Unit will be comprised of one common share
of the Company (each, a “Unit Share”) and one common share purchase
warrant (each, a “Warrant”). Each FT Unit and Charity FT Unit will
consist of one common share of the Company to be issued as a
“flow-through share” within the meaning of the Income Tax Act
(Canada) (each, a “FT Share”) and one Warrant. Each Warrant will
entitle the holder thereof to purchase one common share of the
Company (each, a “Warrant Share”) at a price of C$0.10 for a period
of 36 months following the closing date of the Offering.
The gross proceeds from the issuance of the FT
Shares will be used for “Canadian Exploration Expenses” (within the
meaning of the Income Tax Act (Canada)) (the “Qualifying
Expenditures”), which will be renounced with an effective date no
later than December 31, 2021, to the purchasers of the FT Shares in
an aggregate amount not less than the gross proceeds raised from
the issue of the FT Shares. If the Qualifying Expenditures are
reduced by the Canada Revenue Agency, the Company will indemnify
each subscriber of FT Shares for any additional taxes payable by
such subscriber as a result of the Company’s failure to renounce
the Qualifying Expenditures. It is expected that expenditures will
largely be focused on the continued development of the East Preston
Uranium Project located in the western Athabasca Basin in
Saskatchewan, Canada.
The net proceeds from the sale of Units will be
used for working capital and general corporate purposes.
The closing of the Offering is expected to occur
on or about September 29, 2021 and is subject to receipt of all
necessary regulatory approvals including the TSX Venture Exchange.
Finder’s fees will be payable in accordance with the policies of
the TSX Venture Exchange. All securities issuable in connection
with the Offering will be subject to a hold period of four months
and one day in accordance with applicable securities laws.
The securities offered 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 U.S. state securities
laws, and may not be offered or sold in the United States or to, or
for the account or benefit of, United States persons absent
registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state
securities laws. This press release does not constitute an offer to
sell or the solicitation of an offer to buy securities in the
United States, nor in any other jurisdiction.
Azincourt Engages Red Cloud to provide
market stabilization and liquidity services
Azincourt further announces that, subject to
regulatory approval, it has retained Red Cloud Securities Inc. to
provide its market stabilization and liquidity services to the
Company in compliance with the policies and guidelines of the TSX
Venture Exchange (“TSX-V”) and other applicable legislation.
Red Cloud will trade shares of the Company on
the TSX-V for the purposes of maintaining a reasonable market and
improving the liquidity of Azincourt’s common shares. The agreement
between Red Cloud and the Company may be terminated by either party
with written notice of 30 days. The Company has agreed to pay Red
Cloud $5,000 CDN per month during the term, payable quarterly in
advance. The Company and Red Cloud act at arm’s length, but Red
Cloud may provide investment banking or other services to the
Company and Red Cloud and/or its clients may have an interest,
directly or indirectly, in the securities of Azincourt. The
agreement is principally for the purposes of maintaining market
stability and liquidity for the Company’s common shares and is not
a formal market making agreement. There are no performance factors
contained in the agreement between Red Cloud and the Company and
Red Cloud will not receive any shares or options from the Company
as compensation for services it will render.
About Red Cloud Securities
Inc.
Red Cloud Securities Inc. is a 100%,
principal-owned Canadian based IIROC investment dealer focused in
the junior resource sector. Our primary businesses include
investment banking, equity research, and market stabilization and
liquidity services. Red Cloud was founded by capital markets
professionals with extensive experience in the junior mining
industry. Our goal is to become the leading global investment
boutique in junior resources.
About Azincourt Energy
Corp.
Azincourt Energy is a Canadian-based resource
company specializing in the strategic acquisition, exploration, and
development of alternative energy/fuel projects, including uranium,
lithium, and other critical clean energy elements. The Company is
currently active at its majority-owned East Preston uranium project
in the western Athabasca Basin, Saskatchewan, Canada, and the
Escalera Group uranium-lithium project located on the Picotani
Plateau in southeastern Peru.
ON BEHALF OF THE BOARD OF AZINCOURT
ENERGY CORP.
“Alex Klenman”Alex Klenman, President
& CEO
Neither the 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.
This press release includes “forward-looking
statements”, including forecasts, estimates, expectations and
objectives for future operations that are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of Azincourt. Investors are cautioned that any such
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
in the forward-looking statements. Such forward-looking
information represents management’s best judgment based on
information currently available. No forward-looking statement
can be guaranteed, and actual future results may vary
materially.
For further information please
contact:
Alex Klenman, President & CEOTel:
604-638-8063info@azincourtenergy.com
Azincourt Energy Corp.1430 – 800 West Pender
StreetVancouver, BC V6C
2V6www.azincourtenergy.com
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