First Phosphate Raises $2.3 Million Via Oversubscribed Offering

First Phosphate has closed its most recent round of financing, raising gross proceeds of $2.3 million via an over-subscribed non-brokered private placement. The financing consisted of both hard and flow through units being sold.

Under the terms of the offering, 4.3 million hard dollar units were sold, at a price of $0.35 per unit, with each unit containing one common share and one half of a common share purchase warrant. 2.1 million flow through units were also sold, at a price of $0.40 per each, and contained one flow through share and one half of a common share purchase warrant.

Warrants under the offering contain an exercise price of $0.50, and are valid until December 31, 2025. They also contain an acceleration clause, whereby the firm can accelerate the expiry of the warrants should the company trade above $0.80 on any exchange for a period of five consecutive trading days or longer.

READ: First Phosphate Reports Mineral Estimate for Lac a l’Orignal Project

Proceeds from the financing are to be used for the development of the firms l’Orignal and Begin-Lamarche properties in Quebec, where funds will primarily be used for drilling. Proceeds from the hard dollar financing are also to be used for general corporate purposes.

Shares issued under the offering contain a standard 4-month hold, as well as lock-up arrangement, whereby 25% will be released upon listing, with a further 25% of the units being unlocked upon the 4, 8, and 12 month anniversary’s of the listing.

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Insiders of the company are reported to have acquired 617,214 shares under the offering, with John Passalacqua, CEO of the company, now owning and controlling 19.72% of the company on an undiluted basis, and 22.02% on a partially diluted basis.

FULL DISCLOSURE: First Phosphate is a long investment of Canacom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.

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