Deer Horn increases placement to $350,000
2020-01-27 08:24 ET - News Release
Mr. Tyrone Docherty reports
DEER HORN ANNOUNCES INCREASE TO NON-BROKERED PRIVATE PLACEMENT AND DEBT SETTLEMENT TRANSACTIONS; GRANTS STOCK OPTIONS
Deer Horn Capital Inc. has increased its private placement to raise up to $350,000 by way of a non-brokered private placement of up to seven million units at a price of five cents/unit. Each unit consists of one common share and one common share purchase warrant exercisable at 10 cents per warrant share for a period of two years following the close of the offering. The company may pay a finder's fee consisting of cash, shares and/or warrants to eligible finders as permitted under applicable securities laws and Canadian Securities Exchange policies. Proceeds from this offering will be used for general corporate purposes.
Deer Horn also announces that it has amended the terms to a debt conversion to settle an aggregate of $80,000 owing to insiders. The debt conversion will result in the issuance of an aggregate of 1.6 million units of the company at a deemed price of five cents per unit. Each unit consists of one common share and one common share purchase warrant exercisable at 10 cents per warrant share for a period of two years following the close of the settlement. The settled debt will include the issuance of 1.6 million shares, assuming completion of the debt conversions, consisting of 500,000 common shares to a private company owned by Tyrone Docherty, the chief executive officer, president and a director of the company, to settle $25,000 debt (approximately 1.8 per cent of Deer Horn's then-issued shares, assuming completion of the private placement debt conversions); 900,000 common shares to a private company owned by Tony Fogarassy, a director of the company to settle $45,000 debt (approximately 3.3 per cent of Deer Horn's then-issued shares, assuming completion of the private placement and the debt conversions) and 200,000 shares to Pamela Saulnier, chief financial officer of the company, to settle $10,000 debt (approximately 0.7 per cent of Deer Horn's then-issued shares, assuming completion of the private placement and the debt conversions). The debt settlements to Mr. Docherty, Mr. Fogarassy and Ms. Saulnier will be related-party transactions as defined in Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is exempt from the formal valuation requirement and the shareholder approval requirement of MI 61-101.
Stock options
The company also announces that announces that it has granted a total of 100,000 incentive stock options to a consultant to the company, under the company's stock option plan. The options are exercisable at five cents per share and will expire Jan. 27, 2030.
About Deer Horn Capital Inc.
Deer Horn Capital is committed to exploring for, and providing, strategic and critical metals vital to a low-carbon economy and for the advancement of technology. The company's leadership has a record of project monetization with a board and advisory group that includes industry leaders in finance, mineral property development, geology, mineralogy, solar power, engineering, research and first nations engagement, and economic development.
We seek Safe Harbor.
