Cons Abaddon arranges $2-million financing
2007-04-17 10:48 ET - News Release
Mr. Jim Pettit reports
CONSOLIDATED ABADDON RESOURCES INC. (TSX-V: ABN) NEWS RELEASE
Consolidated Abaddon Resources Inc. has entered into an agreement with Pacific International Securities Inc. and PowerOne Capital Markets Ltd., for the private placement on a commercially reasonable-efforts basis, of up to 2,858,000 units at a price of 70 cents per unit, to raise total gross proceeds of up to $2,000,600.
Each unit will comprise one common share of the company and one transferable common share purchase warrant. Each such warrant will be exercisable to acquire one additional share for a period of two years from closing at an exercise price of 90 cents in the first year and $1.10 in the second year. In addition, the company has agreed an overallotment option whereby the agents may place an additional 714,500 units.
The agents will receive a commission of 7 per cent of the gross proceeds of the offering, payable in cash or units at the election of the agents. In addition, the agents will receive compensation options equal to 7 per cent of the number of units sold under the offering. Each compensation option will entitle the agent to purchase one share at a price of 80 cents for a period of two years following the closing of the offering. All securities issued in the offering will have a hold period in Canada of four months from the closing of the offering.
The company intends to use the proceeds of the private placement for general working capital, reserves for further property investigations and/or acquisitions.
The offering is subject to completion of satisfactory due diligence by the agent with respect to the company, completion and execution of appropriate documentation, acceptance for filing by the TSX Venture Exchange of the offering on behalf of the company and receipt of any required regulatory approvals.
We seek Safe Harbor.
AI
