Fresh news about potential capital infusion into a company is almost always followed with great interest by investors, and in light of the latest developments, it is likely that the Tocvan Ventures Corp. (OTC:TCVNF) stock will come into focus among investors. On Wednesday, the company came into focus after it announced that it had made arrangements for a non-brokered private placement and that there had been a lead order from an institutional investor as well. More importantly, Tocvan Ventures Corp. announced that the term sheet had also been executed for the $1,500,000 investment from the investor.
However, that was not all. The company also announced that it was going to conduct a private placement concurrently to raise $750,000 in capital from other eligible investors in a non-brokered offering. In that offering, Tocvan Ventures Corp. would issue 6,428,571 units in the company for the price of $0.35 per unit to generate gross proceeds to the tune of $2,250,000. Each unit that would be offered would consist of one common share in the company and one share purchase warrant. The holder of each warrant would be entitled to pick up an additional share in Tocvan Ventures Corp. for the price of $0.50 up until 36 months since the date of issuance.
The net proceeds from the two offerings would be used by the company for a range of initiatives. The capital would be used to finance drilling activities, yearly concession fees for the Tocvan Ventures Corp. flagship property in Sonora, Mexico, named Pilar Gold Silver, and for general working capital purposes. The company could pay a finder’s fee in the form of cash or share purchase warrants in connection with the non-brokered offering. The first stage of the institutional offering, which would raise $150,000,000, would be closed no later than April 22, 2024.
