Newlox Gold Sees Insiders Participate In $4.0 Million Financing
Newlox Gold Ventures (CSE: LUX) has closed the second and final round of its unsecured non-brokered convertible debenture financing. The company raised total proceeds of $4.0 million under the financing, with the most recent tranche seeing an additional $1.2 million raised for the junior gold producer.
The financing saw convertible debentures sold at a price of $1,500 per debenture, with each debenture carrying an interest rate of 10% per annum. Convertible at $0.15 per common share, the debentures are valid for a period of two years from the date of issuance. 10,000 common share purchase warrants were issued with each unit sold, resulting in a total of 8.1 million common share purchase warrants being sold under the offering, with each warrant containing an exercise price of $0.25 and an expiry of two years from the date of issuance.
Notably, two executives from the firm as well as a family member of an executive participated in the final tranche of the financing. CEO Ryan Jackson acquired 75 units within the final round, dropping a total of $112,5000 into the financing. A relative of his also subscribed under the offering, for $112,500 as well. Also taking part in the raise was that of Jeffrey Benavides, the CFO of the company, whom acquired 74 units under the offering, thereby placing $111,000 into the company.
“The Newlox Gold team anticipates 2021 to be a milestone year for the Company, with its first processing plant slated for full-scale operation, and a second processing plant expected to become operational. We believe that Newlox Gold will be defined in the coming year as a rapidly growing gold company.”
Ryan Jackson, CEO of Newlox Gold Ventures
Newlox Gold Ventures last traded at $0.275 on the CSE.
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