On May 4, 2015, Energizer Resources Inc. closed its private placement offering of 20,550,998 special warrants for gross proceeds of approximately C$2.5 million.
Each Special Warrant entitles the holder to acquire, for no additional consideration, one unit (a “Unit”) of Energizer, with each Unit comprised of one common share of Energizer (a “Common Share”) and one-half of one common share purchase warrant of Energizer (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share of Energizer (the “Warrant Shares”) at a price of US$0.14 per Common Share until May 4, 2018.
The Common Shares and Warrants will be deemed to be exercised on the earlier of: (i) the third business day following the day upon which Energizer obtains a receipt for a final prospectus and further provided that the Company has filed (and has in effect) a resale registration statement in the United States with the Securities and Exchange Commission; and (ii) November 4, 2015. If the Company fails to obtain a receipt for the final prospectus and file (and have in effect) the resale registration statement by August 4, 2015, the holders of Special Warrants will be entitled to receive 1.1 Common Shares (instead of one Common Share) and 0.55 of a Warrant (instead of 0.5 of a Warrant) on the deemed exercise of the Special Warrants.
The net proceeds of the Offering are anticipated to be used to further develop the Molo Graphite Project and for general working capital purposes.
The Offering was led by Secutor Capital Management Corporation.