Momentum Public Relations
Press Release: November 1, 2017
Arctic Star Exploration Corp. has completed the first tranche of its previously announced non-brokered private placement, as described in its news release dated Oct. 26, 2017, pursuant to which it has issued an aggregate of 9.65 million units at a price of 10 cents per unit for gross proceeds of $965,000. Each unit consists of one common share in the capital of the company and one non-transferable share purchase warrant. Each warrant is exercisable into one additional share at a price of 15 cents per share for a period of 24 months from the closing date. The company intends on completing additional tranches of the private placement.
The securities issued under the financing and the shares that may be issuable on exercise of the warrants are subject to a statutory hold period expiring on March 1, 2018.
The company paid a cash finder’s fee of $40,800 to a certain finder and issued 408,000 share purchase warrants to one finder in connection with the first tranche of the financing. Each finder’s warrant is exercisable into one share at a price of 10 cents per share for a period of two years from the date of issuance.
The company plans to use the proceeds from the private placement for exploration of the Foriet diamond property and for general working capital.
An insider of the company subscribed for a total of 350,000 units under the financing. The company did not file a material change report more than 21 days before completion of this tranche of the private placement because management believed that it was in the company’s best interest to close promptly and that the filing of a material change report in less than 21 days was reasonable under the circumstances.
We seek Safe Harbor.
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