Atom Energy Announces Private Placement
Atom Energy Inc. (TSX-V: AGY.H) (“Atom” or the “Company”) announces that it intends to complete a non-brokered private placement for gross proceeds of up to $640,000 through the issuance of up to 6,400,000 common shares at a price of $0.10 per share. Shares to be issued for this private placement will be made available by way of an exemption to accredited investors (as defined in National Instrument 45-106 – Prospectus and Registration Exemptions) in Canada and to certain other qualified investors as the Company may agree.
In connection with the private placement, where permitted by applicable securities legislation, any shares sold to purchasers referred to the Company by registered broker dealers, limited market dealers, or other eligible arm’s-length persons may result in a cash commission in an amount equal to 10 per cent of the gross proceeds of the shares sold to such referred purchasers, to be paid out of the gross proceeds of shares to the finder at closing. As additional consideration, the Company may issue to the finder common share purchase warrants entitling the finder to purchase an additional number of common shares equal to 10 per cent of the aggregate number of shares sold by the finder in the private placement. Subject to regulatory approval, each finder warrant will be exercisable to acquire one common share at the corresponding exercise price of 12.5 cents for a period of 12 months after the closing date.
Proceeds of the private placement will be allocated to working capital. It is anticipated that the Company’s working capital will be just under $500,000 upon completion of the private placement as per NEX Policy 5.4.
TSX-V Approval and Statutory Hold Periods
Closing of the private placement will be subject to TSX Venture Exchange approval.
All shares issued in connection with the private placement will be subject to a four month plus one day statutory hold period.
ON BEHALF OF THE BOARD OF DIRECTORS
“John Veltheer ”
John Veltheer, CEO & Director
For information, please contact the Company:
Phone: (604) 562-6915
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Caution concerning forward-looking statements
This news release may contain forward-looking statements that are based on the Company’s expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.