4 June 2020
Aston Bay Holdings Ltd. is pleased to announce that it has today closed the Company’s non-brokered private placement, previously announced on May 20, 2020 (the “Offering”). Pursuant to the fully subscribed Offering, the Company has issued 10,003,333 units (each a “Unit”) at a price of $0.06 per Unit, for aggregate gross proceeds of $600,200. The closing is subject to final acceptance of the TSX Venture Exchange.
Each Unit consists of one common share of the Company and one full warrant (a “Warrant”). Each Warrant entitles the holder to acquire an additional common share of the Company at an exercise price of $0.12 per Warrant for a period of 24 months from the date of issuance. The Warrants are subject to acceleration provisions when the volume weighted average trading price is greater than $0.25 for 10 consecutive trading days.
In connection with the closing of the Offering, Aston Bay has paid aggregate cash finder’s fees of $30,396 to five arm’s length finders, representing 6% of the proceeds raised from subscriptions by certain placees introduced by the finders. The Company has issued to the finders share purchase warrants (the “Finder’s Warrants”) entitling the purchase of an aggregate 506,600 common shares, on the same terms as the Warrants.
All shares acquired by the placees under the Offering, and shares which may be acquired upon the exercise of the Warrants and the Finder’s Warrants, are subject to a hold period until October 5, 2020, in accordance with applicable Canadian securities legislation. Warrants and Finder’s Warrants issued in the Offering are exercisable at $0.12 to purchase one common share of the Company until June 4, 2022.
Proceeds of this Offering will be used for exploration activities at the Company’s Virginia gold properties and for general corporate purposes.