Storm Exploration closes C$3.2M private placement financing
VANCOUVER - Storm Exploration Inc. (TSXV:STRM) successfully completed a private placement on Sunday, raising C$3.2 million through the issuance of 8 million units. Each unit comprises one common share and one-half of a warrant, exercisable at C$0.55 for two years from closing. The company utilized C$24,000 in cash and provided finder's warrants to eligible individuals for a portion of the sold units.
Net proceeds will be allocated towards exploration drilling at the Gold Standard project and general corporate and working capital needs. Securities are bound by a hold period until January 15, 2027. Eric Sprott, through 2176423 Ontario Ltd., acquired 5 million units for C$2 million, increasing his ownership to 15.8% non-diluted and 19.99% partially diluted.
The transaction between Sprott and Storm Exploration is considered a related party transaction. The company has chosen to utilize exemptions from formal valuation and minority shareholder approval due to the issuance values remaining below 25% of its market capitalization.
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