Grizzly Closes $1.6 Million Private Placement
EDMONTON, ALBERTA – April 25, 2022 — Grizzly Discoveries Inc. (TSX-V: GZD; Frankfurt: G6H; OTCQB: GZDIF) (“Grizzly” or the “Company”) is pleased to announce that, on April 22, 2022, it closed on a private placement (the “Offering”) by the issuance of 2,383,340 Units (as defined below) and 25,026,670 FT Units (as defined below) at a price of $0.06 per Unit and per FT Unit for aggregate gross proceeds of $1,644,600.
Under the terms of the Offering, each Unit consisted of one common share of the Company (“Common Share”) and one warrant (“Warrant”). Each FT Unit consisted of one Common Share issued as a flow through share for the purposes of the Income Tax Act (Canada) and one half of one Warrant. Each whole Warrant entitles the holder to acquire one additional Common Share at an exercise price of $0.08 per Common Share until April 22, 2024.
The Company intends to use the proceeds from the Units for general working capital, and the proceeds from the Units and FT Units on exploration of its Greenwood and Robocop mineral projects in British Columbia. Grizzly will focus efforts on new high-priority battery metals (copper and cobalt) drill targets to be drilled during 2022. Recent geophysical results have outlined large areas with anomalous geological potential for new copper-cobalt discoveries.
In connection with the Offering, the Company paid cash finder’s fees of $11,340 and issued 189,000 Finder Warrants (non-transferrable, otherwise with the same terms and expiry date as the Warrants) to Hampton Securities Limited, and issued 1,663,200 Units and 1,663,200 Finder Warrants to Accilent Capital Management Inc.
The Common Shares and any Common Shares issued on exercise of the Warrants and Finder Warrants are subject to restrictions on trading until August 23, 2022 in accordance with the policies of the TSX Venture Exchange.
Following closing of the Offering, the Company has 130,674,890 Common Shares issued and outstanding. The Offering is subject to Final Acceptance by the TSX Venture Exchange.
Insiders subscribed for an aggregate of 350,000 FT Units and 150,000 Units, representing gross proceeds of $30,000. The purchase of such Units is considered to be a related-party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”),but is exempted from the requirements to obtain a formal valuation and to obtain minority approval, as the purchase of securities does not exceed 25% of the Company’s market capitalization. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101.
The Company did not file a material change report more than 21 days before the expected closing of the Financing because the details of the participation therein by related parties of the Company were not settled until shortly prior to closing of the Financing and the Company wished to close on an expedited basis for business reasons.
Warrants Exercised
On April 14, 2022, the Company issued 400,000 Common Shares for proceeds of $30,000 upon the exercise of outstanding warrants.
ABOUT GRIZZLY DISCOVERIES INC.
Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange focused on developing its approximately 66,000 ha (approximately 165,000 acres) of precious and base metals properties in southeastern British Columbia. Grizzly is run by highly experienced junior resource sector management team, who have a track record of advancing exploration projects from early exploration stage through to feasibility stage.
On behalf of the Board,
GRIZZLY DISCOVERIES INC.
Brian Testo, CEO, President
For further information, please visit our website at www.grizzlydiscoveries.com or contact:
Chris Beltgens
Corporate Development
Tel: 604-282-6372
Email: cbeltgens@grizzlydiscoveries.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.