Silvermet / Global Atomic Fuels brokered private placement
Silvermet Inc. Announces Private Placement Offering
TORONTO, Nov. 24, 2017 — Silvermet Inc. (“Silvermet”) (TSXV:SYI) is pleased to announce that, pursuant to the previously announced amalgamation of Silvermet and Global Atomic Fuels Corporation (the “Amalgamation”) and subsequent consolidation of share capital approved at each companies’ Annual & Special Meeting of Shareholders held September 29, 2017 (collectively, the “Transaction”), Global Atomic Fuels Corporation (“Global Atomic”) is currently raising up to $3 million through the issuance of up to 12 million Units under a brokered private placement led by Cantor Fitzgerald Canada Corporation (the “Offering”).
Each Unit is priced at $0.25 – which price is equivalent to $0.116 per current Silvermet common share outstanding – and consists of one common share and one-half of one common share purchase warrant, exercisable at $0.50 for 18 months from closing of the Transaction. On completion of the Transaction, the prices of the Units and purchase warrants will be $0.32 and $0.64, respectively. The Offering is expected to close on or about December 8, 2017 and the Transaction is expected to close on or about December 29, 2017.
Silvermet Share Consolidation and Amalgamation
Subject to the approval the TSX Venture Exchange (“TSXV”), Silvermet will, immediately prior to the Amalgamation, effect a consolidation of its issued and outstanding common shares on the basis of one new Silvermet common share for every 2.75 Silvermet common shares outstanding prior to the consolidation (the “Silvermet Share Consolidation”). Assuming completion of the Silvermet Share Consolidation, at the effective time for the Amalgamation, Silvermet will issue to each holder of Global Shares 0.7807 fully paid and non-assessable common shares in its capital (the “Exchange Ratio”) for each Global Share (the “Resulting Issuer Shares”). Following the Amalgamation, the purchase warrants issued pursuant to the Offering will be exercisable for Resulting Issuer Shares, with the number of Resulting Issuer Shares issuable and the exercise price of the purchase warrants adjusted in accordance with the Exchange Ratio.
Completion of the Offering and the Transaction described above are subject to the approval of the TSX Venture Exchange. For further information, please contact:
Stephen G. Roman
Chairman, President & CEO
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