Pan Global Resources Inc. (TSXV: PGZ & OTCQB: PGNRF) (“PGR” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of arm’s length participants (the “Participants”) to complete a non-brokered private placement of up to 8,000,000 units (the “Units”) of the Company at a price of $0.07 per Unit for gross proceeds of up to $560,000 (the “Private Placement”). Each Unit will consist of one common share and one common share purchase warrant (each a “Warrant”). Each Warrant will entitle the holder thereof to purchase one additional common share of the Company at an exercise price of $0.14 per common share for a period of 24-months from the closing of the Private Placement. The Private Placement is subject to a minimum subscription of $100,000 and maximum subscription of $560,000.
The net proceeds raised from the Private Placement will be used for general working capital and for general corporate purposes, which could include the reduction of existing liabilities on the corporate balance sheet. All securities issued in connection with the Private Placement are subject to a four-month hold period which shall expire four months after closing.
The Company also announces that, in connection with the Private Placement, it will pay a total finder’s fee to certain arm’s length participants which may include finders’ options equal to up to 10% of the gross proceeds raised from subscribers introduced by such arm’s length participants.
The securities issued in connection with the Private Placement will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or the securities laws of any state of the United States and such securities may not be offered or sold within the United States absent registration under the U.S. Securities Act or an applicable exemption from such registration requirements.
Subject to receipt of all applicable regulatory approvals, including the approval of the TSX Venture Exchange, the Private Placement is expected to close on or about June 19, 2021.