News about raising capital is almost always a source of interest for investors due to the overall implications, and this past Friday it was Regency Silver Corp. (OTC: RSMXF) that made such an announcement. The company announced on April 12 that it had raised an additional $215,200 through a non-brokered private placement of $800,000 that Regency Silver Corp. had previously announced. The company noted in its news release that, owing to the demand generated by the offering, it had been upsized to as much as $993,700.
It was revealed that Regency Silver Corp. had issued as many as 1,076,000 units for the price of $0.20 per unit in the closing of its final tranche to raise gross proceeds to the tune of C$215,200. Each unit offered by the company was made up of one share of the common stock in the company and half of one transferable common share purchase warrant. The holder of a whole warrant would be entitled to pick up one common share in Regency Silver Corp. for the price of C$0.30 for a period of two years from the issuance date.
In the news release, it was also announced that the company paid out the finder’s fee in cash to the tune of $8492 and also 42460 warrants. A broker warrant would entitle the holder to buy a common share in the company for the price of C$0.30 per share for a period of two years from the issuance date. However, it was also revealed that all securities that had been issued in the private placement were going to be under a hold period of four months as per the relevant securities laws in Canada.
The company also announced that proceeds from the private placement would be used for the development and exploration of the Regency Silver Corp. properties and also for general working capital purposes.
