Eclipse Gold (TSXV: EGLD) has completed the next step in connection with its proposed acquisition by Northern Vertex Mining (TSXV: NEE). The company last night announced the closing of a subscription receipt financing, raising gross proceeds of $22.6 million, as was required to proceed with the proposed transaction.
Receipts were priced at $0.50 each, with each receipt set to convert to 1/1.09 of a unit of Eclipse upon closing, consisting of one common share and one half of a purchase warrant. Upon closing of the merger transaction, each unit will then convert to one whole Northern Vertex unit for each subscription receipt held. Warrants are valid for a period of two years from the closing of the offering, at an exercise price of $0.80 per Northern Vertex share.
Furthermore, subscription receipts will only convert if the transaction between the two entities closes. If release conditions are not met by March 31, 2021, funds will be returned to the holders of the subscription receipts along with any applicable interest.
Following the closing of the financing, shareholders will now be required to vote on the transaction at a special meeting to approve the transaction, which is slated for February 4, 2021. If approved, the transaction is then anticipated to close February 12, 2021.
Sponsored · Nord Precious Metals
Eclipse Gold last traded at $0.52 on the TSX Venture.
Information for this briefing was found via Sedar, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
