Kombat Copper Inc. (TSX-V: KBT) (“Kombat Copper” or the “Company”) has closed the previously announced non-brokered private placement pursuant to which it has issued 3,250,000 subscription receipts (“Subscription Receipts”) to Rodinia Lithium Inc. (“Rodinia”) at a price of $0.08 per Subscription Receipt for gross proceeds of $260,000 (the “Offering”).
The gross proceeds of the Offering will be held in escrow until the following conditions are met:
- The common shareholders of Rodinia approve Rodinia’s proposed change of business to a tier 2 investment company under the rules of the TSX Venture Exchange (“Proposed COB”) at a meeting of the common shareholders of Rodinia scheduled to be held on August 11, 2016 (the “Rodinia Shareholders’ Meeting”); and
- The TSX Venture Exchange granting Rodinia final approval of the Proposed COB.
Upon completion of the conditions precedent, each Subscription Receipt will entitle the holder to acquire, automatically and without any additional payment, one common share of Kombat Copper (a “Share”) and one common share purchase warrant (a “Warrant”). If the conversion of the Subscription Receipts does not occur on or before 10 business days after the Rodinia Shareholders’ Meeting is held, Rodinia will be entitled to a return of its full subscription price.
Each Warrant will entitle Rodinia to acquire one Share (a “Warrant Share”) at a price of $0.13 per Warrant Share at any time on or before the date that is three years from the date of issue of the Warrants, subject to an acceleration provision whereby if after the expiry of the statutory hold period, the Shares trade at $0.30 or higher on the TSX Venture Exchange, on a volume weighted average basis for a period of 30 consecutive days, the Company shall have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the Company issues a news release announcing that it has elected to exercise the acceleration right.
The Subscription Receipts and the underlying securities will all be subject to a four month statutory hold period. The proceeds are intended be used for general corporate purposes.