Grizzly completes $1.44-million first tranche
2010-07-05 16:20 ET- News Release
Mr. Brian Testo reports
GRIZZLY DISCOVERIESINC. CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
GrizzlyDiscoveries Inc. has closed the first tranche of a non-brokered privateplacement of a total of 3,196,595 non-flow-through units at a price of30 cents per non-flow-through unit and 1.4 million flow-through units ata price of 35 cents per flow-through unit, for gross proceeds of$1,448,978.
Each non-flow-through unit consisted of one commonshare of the corporation and one non-transferable common share purchasewarrant entitling the holder to acquire one additional common share at aprice of 50 cents. Each flow-through unit consisted of one common shareissued as a flow-through share pursuant to the Income Tax Act (Canada)and one non-transferable common share purchase warrant entitling theholder to acquire one additional non-flow-through common share at aprice of 60 cents. The flow-through unit warrants and thenon-flow-through unit warrants expire on the earlier of: (a) 30 daysfollowing the issuance of a news release by the corporation that thetrading price of the common shares on the TSX Venture Exchange is at orgreater than 80 cents per common share for 10 consecutive trading days;and (b) July 5, 2011.
The non-flow-through units and theflow-through units were sold to qualified purchasers in reliance uponexemptions from the prospectus and registration requirements ofapplicable securities legislation. Insiders of the corporation purchaseda total of 500,000 non-flow-through units and all of the flow-throughunits. The common shares forming part of the units, the warrants and thecommon shares issuable upon exercise of the warrants are subject to arestricted period ending on Nov. 6, 2010.
The proceeds from thesale of the flow-through units will be used to incur expenditures whichqualify as Canadian exploration expenses on the corporation's Canadianexploration properties. The proceeds from the sale of thenon-flow-through units will be used for exploration on the company'smineral properties, working capital and general corporate purposes.
Subjectto approval of the TSX-V, Grizzly will close on an additional 766,738non-flow-through units for gross proceeds of $230,021.
