Green Swan Provides Details on Non-brokered Financing and Debt Conversion
Burlington, Ontario--(Newsfile Corp. - April 17, 2017) - Due to investor demand and with the increasing public awareness of the global shortage of cobalt, Green Swan Capital Corp. (TSXV: GSW) (the "Company" or "Green Swan") announces a non-brokered financing (the "Offering") which will consist of:
(a) up to $500,000 in Common Share Units, each priced at $0.08 (eight cents), with each Common Share Unit consisting of one common share and one common share purchase warrant. Each common share purchase warrant shall be exercisable for an 18-month period at $0.10 (ten cents); and
(b) up to $500,000 in Flow-through Units, each priced at $0.10 (ten cents), with each Flow-through Unit consisting of one common share issued on a flow-through basis (the "Flow-through Share") and one common share purchase warrant exercisable for an 18-month period at $0.12 (twelve cents).
Proceeds from the sale of the Flow-Through Units will be used for "Canadian Exploration Expenses" which qualify as "Flow-Through Mining Expenditures" for the purposes of the Income Tax Act (Canada) and the Company will renounce such expenses with an effective date no later than December 31, 2017.
Proceeds from the Offering generally will be used for community engagement, exploration, data compilation, drilling, all with a focus on cobalt, and for general purposes and administration costs.
Where applicable, a finder's fee may be paid of 7% cash and 7% in broker warrants, with such broker warrants having the same characteristics as the underlying securities for which they have been issued.
The Offering will take place by way of a private placement to qualified investors in those jurisdictions where the Offering can lawfully be made. The securities to be issued under the Offering will be subject to a minimum regulatory four month and one day hold period, from the closing. Closing is anticipated to take place on the obtaining of regulatory approval.
In addition to the Offering, three arm's length creditors of the Company holding $28,000.00 (twenty-eight thousand dollars) of debt in the aggregate have each agreed to convert their respective debts into Common Share Units, which would result in the issuance of a total of 350,000 Common Share Units (the "Debt Conversion").
The previously disclosed brokered financing agreement with Industrial Alliance Securities Inc. has been terminated.
The price of cobalt as traded on the London Metal Exchange is up over 250% since February, 2016. Shareholders are reminded to vote and/or attend the April 24, 2017 shareholder meeting, at which time among other things the shareholders will be asked to approve a corporate name change to "CBLT Inc." The Company has reserved the trading symbol "CBLT". The Company believes this name and symbol better reflect its focus on exploring and developing cobalt assets in responsible mining jurisdictions. Shareholders can download the circular and other meetings materials from www.sedar.com.
Regulatory approval will be required for the corporate name change, the symbol change, the Offering and the Debt Conversion.
Green Swan continues to build its impressive portfolio of assets in mining-friendly jurisdictions, including its main Sudbury gold/cobalt asset, Dryden Cobalt, Otto Lake, Chilton Cobalt, Geneva Lake, Ryliejack and Mikayla.
