Lomiko Closes Oversubscribed Financing Of $750,000

Vancouver, B.C., Oct. 23, 2020 (GLOBE NEWSWIRE) — Lomiko Metals Inc. (“Lomiko”) (TSX-V: LMR, OTC: LMRMF, FSE: DH8C) announces it has received subscriptions and closed it private placement financing, and raised $750,000 through the sale of 15,000,000 units at the price of $0.05 per unit.  Each unit consisting of one common share and warrant exercisable for two years at $0.10 from the closing date. 

Proceeds will be for working capital.  The securities will be issued having a four-month plus one day hold period.  The issuance of the securities is subject to the final approval of the TSX.

A director of the Company participated as to an aggregate of 3,000,000 Units.  The participation in the private placement by the director of the Company may be considered a “related party transaction” (the “Related Party”) as defined under Multilateral Instrument 61-101 (“Ml 61-101”). The Company has determined that exemptions from the formal valuation and minority shareholder approval requirements under Ml 61-101 are available.  In particular, the Company has determined that the exemptions set out in paragraphs (a) and (b) in section 5.5 of Ml 61-101 are applicable since the aggregate consideration to be paid by the Related Party does not exceed 25% of the market capitalization of the Company and the Company is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange.  In addition, regarding the minority shareholder approval exemptions, the independent directors have determined that the exemptions set out in paragraphs (l)(a) and (b) in section 5.7 of Ml 61-101 are applicable in that the aggregate consideration to be paid by the Related Party does not exceed 25% of the market capitalization of the Company, the distribution of the securities to the Related Party has a fair market value of not more than $150,000 and the Company is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange.

Cash finder’s fee of $29,750, 238,000 common shares, and 238,000 warrants has agreed to be paid to EMD Financial.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

<span>%d</span> bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close