en.Wedoany.com Reported - Primary Hydrogen Corp. has announced the closing of a LIFE non-brokered private placement, issuing a total of 2,459,570 units at a price of CAD 0.60 per unit, for aggregate gross proceeds of approximately CAD 1,475,742.
Each unit consists of one common share and one common share purchase warrant in the capital of the Company. Each warrant entitles the holder to purchase one common share at a price of CAD 0.80 per share for a period of twenty-four months from the date of issuance, provided that the warrants are not exercisable for 60 days from the date of issuance.
In connection with the closing of the Offering, the Company issued 150,979 finder warrants to Research Capital Corporation, each finder warrant exercisable to purchase one common share at a price of CAD 0.80 per share for a period of twenty-four months from the date of issuance.
Pursuant to applicable Canadian securities laws, the units issued in the Offering are not subject to a hold period. With respect to the use of proceeds from the Offering, the Company immediately paid CAD 5,000 in cash to each of director Martin Kowchun and director William Timothy Heenan (for an aggregate of CAD 10,000) to partially settle bona fide outstanding debts. Following such payments, the Company received net proceeds of approximately CAD 1,465,742, which are intended to be used for general working capital and general administrative purposes. The Company may also use a portion of the net proceeds to acquire additional exploration assets should suitable opportunities arise.
Director Martin Kowchun subscribed for 15,187 units and William Timothy Heenan subscribed for 8,333 units, constituting a related party transaction under Multilateral Instrument 61-101. The Company relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the securities issued to the directors and the fair market value of the debt settlement did not exceed 25% of the Company's market capitalization. The Company did not file a material change report more than 21 days prior to the completion of the Offering and related debt settlement, as the specific details of director participation and debt repayment were not confirmed until shortly before closing, and the Company considered it necessary to complete the Offering promptly.
Primary Hydrogen is a natural hydrogen exploration and development company with projects spanning over 740 acres in the United States and 230 square kilometers in Canada, including the Blakelock, Hopkins, Mary's Harbour, Point Rosie, Crooked Amphibolite, Coquihalla, and Cogburn projects. The Company also holds an option to acquire a 75% interest in a hydrogen-rare earth project named Wicheeda North, located in British Columbia.
