FULL DISCLOSURE: This is sponsored content for First Phosphate.
First Phosphate (CSE: PHOS) has seen management step up to the plate in order to maintain an orderly market. The company has seen its members of management reach an agreement to acquire 50% of the common shares of First Phosphate held by Glen Eagle Resources.
The shares to be acquired by members of management consist of those that are released from escrow in 2023 as well as 2024. In total 2.7 million shares are to be acquired, with the remaining 2.7 million shares held by Glen Eagle subject to lock-up restrictions until at least 2025.
The shares held by Glen Eagle were acquired via the sale of the Lac a l’Orignal property last year to First Phosphate. The property, previously referred to as the Moose Lake phosphate property, was sold for 6.0 million shares as well as a cash component. Liquidity issues had led to Glen Eagle selling 163,500 common shares of the issuer in April and a further 436,500 shares in May before an agreement was made with members of First Phosphate’s management team.
“This agreement allows GER to fulfill its need for immediate liquidity and yet for First Phosphate to maintain an orderly market in the trading of its common shares. I am proud of our board and management team for stepping up swiftly and decisively with our own personal financial resources in favour of a solution that strengthens shareholder value,” commented Laurence W. Zeifman, Chairman of the Board for First Phosphate.
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The transaction is slated to close on May 31, after which the company will disclose which members of management have acquired a further stake in the firm.
The transaction follows the company in late April closing a non-brokered private placement for gross proceeds of $2.4 million. That offering was lead by the company’s management, which collectively subscribed for $456,380 in hard dollar and flow through units.
First Phosphate last traded at $0.45 on the CSE.
FULL DISCLOSURE: First Phosphate is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover First Phosphate on The Deep Dive, with The Deep Dive having full editorial control. 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.
