Inca One receives $1.5M (U.S.) in financing commitments
2015-02-26 08:33 ET - News Release
Mr. Edward Kelly reports
INCA ONE RECEIVES TOTAL COMMITMENTS OF US$1,500,000 IN DEBENTURE FINANCING
Inca One Gold Corp., further to its news release dated Feb. 18, 2015, has now received total commitments of $1.5-million (U.S.) in respect of its non-brokered private placement of units, which is $1-million (U.S.) above the initial $500,000 (U.S.) previously announced.
Closing of the first tranche of $1-million (U.S.), including the $500,000 (U.S.) previously announced, is expected to occur shortly. Closing of a second tranche of $500,000 (U.S.) is expected mid-March. Closing of the tranches is subject to approval of the TSX Venture Exchange.
The net proceeds of the debt financing will provide the company with additional funds for both future working capital and accretive expansion opportunities.
The financing
The debt financing will be for up to 60 units, with each unit comprising one debenture in the principal amount of $25,000 (U.S.), and 25,000 non-transferable warrants to purchase up to 25,000 shares of the company's common stock, exercisable for up to 12 months from closing at an exercise price of 25 cents. The holders of the debentures will be entitled to receive interest at the rate of 14 per cent per annum, calculated and paid quarterly in arrears. The term of the debentures is 12 months.
A finder's fee of 8 per cent of the gross proceeds of the debt financing will be payable in cash by the company to certain finders in accordance with exchange policies. The company will also issue to the finders that number of finders' warrants equal to 8 per cent of the proceeds of the debt financing, divided by the exercise price of 25 cents.
We seek Safe Harbor.
© 2015 Canjex Publishing Ltd. All rights reserved.
