Geomega Extends and Reprices Warrants
16 April 2020 - 11:00PM
Geomega Resources Inc. (“
Geomega” or the
“
Corporation”) (TSX.V: GMA) reports that it has
received the TSX Venture Exchange (the “Exchange”) approval to
effect an expiry date extension of 4,451,000 share purchase
warrants (the “Extension Warrants”) and to also reprice 1,302,778
share purchase warrants (the “Repriced Warrants”). The Extension
Warrants were originally issued in connection with two non-brokered
private placements (the “2018 Placements”) that closed on May 2,
2018 (1,650,000 units), May 14, 2018 (4,600,000 units) and May 18,
2018 (2,652,000 units). The Repriced Warrants were originally
issued on June 19, 2015 (2,605,556 units) as part of the June 19,
2015 non-brokered private placement (the “2015 Placement”). Each
unit in all three Placements consisted of one share and one-half of
one share purchase warrant.
The original terms of the 2015 Placement
specified that each warrant from the closing was exercisable into
one common share of the Corporation at a price of $0.23 until June
19, 2017. The warrants were extended to June 19, 2018 and then
finally to June 19, 2020. These warrants are the Repriced Warrants
which are now exercisable into one common share of the Corporation
at a price of $0.14 per warrant share until June 19, 2020. As per
the Exchange policy 4.1, if for any ten consecutive trading days
during the unexpired term of the Repriced Warrants (“Premium
Trading Days”), the closing price of the share price of the
Corporation exceeds $0.19 for 10 days, the exercise period of the
Repriced Warrants will be reduced to 30 days beginning no more than
7 calendar days after the tenth Premium Trading Day. All these
warrants are held by Quebec institutional investors and some of the
Corporation’s largest private shareholders.
The original terms of the 2018 Placements
specified that each warrant is exercisable into one common share of
the Corporation at a price of $0.15 per share until May 2, 2020,
May 14, 2020 and May 18, 2020, respectively. The original expiry
date of the Warrants has now been extended for an additional period
of 24 months. There are no other proposed changes to the terms of
the Extension Warrants.
The table below summarizes the changes to all
the Warrants.
Number of Warrants |
Previous Exercise Price |
Previous Expiry |
New Exercise Price |
New Expiry |
1,302,778 |
$0.23 |
2020-06-19 |
$0.14 |
2020-06-19 |
825,000 |
$0.15 |
2020-05-02 |
$0.15 |
2022-05-02 |
2,300,000 |
$0.15 |
2020-05-14 |
$0.15 |
2022-05-14 |
1,326,000 |
$0.15 |
2020-05-18 |
$0.15 |
2022-05-18 |
About Geomega
(www.geomega.ca)Based in
Boucherville and St-Bruno, Canada, Geomega Resources has developed
a proprietary, environmentally friendly “ISR Technology” that
recycles rare earth elements with focus on the permanent magnet
industry and produces four high demand, high price, rare earth
elements (HHREE – specifically Nd, Pr, Tb, Dy).
The Corporation is advancing towards initial
production from its demonstration plant to supply HHREE’s to North
America and other parts of the world.
Geomega also owns the Montviel rare earth
carbonatite deposit and holds over 16.8M shares, representing
approximately 19% of the issued and outstanding shares of Kintavar
Exploration Inc. (KTR.V), a mineral exploration company that is
advancing the Mitchi stratiform copper project in Quebec.
For further information, please
contact:Kiril MugermanPresident and CEOGeomega450-641-5119
ext.5653kmugerman@geomega.ca
Cautions Regarding Forward-Looking
Statements Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This news release contains statements that may
constitute “forward-looking information” or “forward-looking
statements” within the meaning of applicable Canadian securities
legislation. Forward-looking information and statements may
include, among others, statements regarding future plans, costs,
objectives or performance of the Corporation, or the assumptions
underlying any of the foregoing. In this news release, words such
as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”,
“anticipate”, “intend”, “plan”, “estimate” “target” and similar
words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should not
be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether, or the times at
or by which, such future performance will be achieved. No assurance
can be given that any events anticipated by the forward-looking
information will transpire or occur, including as regards the
commercialization of any of the technology referred to above, or if
any of them do so, what benefits the Corporation will derive.
Forward-looking statements and information are based on information
available at the time and/or management's good-faith belief with
respect to future events and are subject to known or unknown risks,
uncertainties, assumptions and other unpredictable factors, many of
which are beyond the Corporation’s control. These risks,
uncertainties and assumptions include, but are not limited to,
those described under “Risk Factors” in the Corporation’s annual
management’s discussion and analysis for the fiscal year ended May
31, 2019, which is available on SEDAR at www.sedar.com; they could
cause actual events or results to differ materially from those
projected in any forward-looking statements. The Corporation does
not intend, nor does the Corporation undertake any obligation, to
update or revise any forward-looking information or statements
contained in this news release to reflect subsequent information,
events or circumstances or otherwise, except if required by
applicable laws.
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