AI assistant
Scottie Resources Corp. — Capital/Financing Update 2020
Jan 28, 2020
46847_rns_2020-01-27_edc4799f-91a0-4d66-ac01-fca855faf35a.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
FORM 51-102F3 Material Change Report
Item 1. Name and Address of Company Scottie Resources Corp. (“ Scottie ” or the “ Company ”) PO Box 48202 Bentall Vancouver, BC V7X 1H8
Item 2. Date of Material Change January 16, 2020
Item 3. News Release The News Release dated January 16, 2020 was disseminated via Globe Newswire. Item 4. Summary of Material Change Scottie announced that it has closed its non-brokered private placement (the “ Private Placement ”) with investor, Eric Sprott, previously announced January 10, 2020.
A total of $2,000,000 was raised in the Private Placement, with a total of 10,000,000 units being issued.
Item 5.1 Full Description of Material Change
Scottie announced that, further to its news release of January 10, 2020, it has closed its Private Placement with Eric Sprott, consisting of 10,000,000 units (the “ Units ”) at a price of $0.20 per Unit, for gross proceeds of $2,000,000. Each Unit consists of one common share and one common share purchase warrant (a “ Warrant ”) in the capital of the Company. Each Warrant is exercisable into one common share of the Company for a period of 24 months from closing at a price of $0.30 per common share.
Mr. Eric Sprott, through 2176423 Ontario Ltd., acquired 10,000,000 Units pursuant to the Placement. Prior to the Financing, Mr. Sprott did not beneficially own or control any common shares of Scottie. As a result of the Placement, Mr. Sprott beneficially owns or controls 10,000,000 common shares and 10,000,000 Warrants of the Company, representing approximately 11.3% of the issued and outstanding common shares of Scottie on a non-diluted basis and approximately 20.3% of the issued and outstanding common shares of Scottie on a partially-diluted basis, assuming the exercise of Mr. Sprott's warrants as of the date hereof.
In connection with the Placement, finders fees of 600,000 Units were paid to Mackie Research Capital Corporation (each a “ Finder’s Unit ”). Each Finder’s Unit is comprised of one common share of Scottie and one warrant, with each such warrant having the same terms and conditions as the Warrants issued in the Placement. All of the securities issuable pursuant to the Placement, including the Finder’s Units, will be subject to a fourmonth hold period from the date of closing, expiring May 17, 2020.
The proceeds from the sale of Units will be used for exploration of the Company’s British Columbia properties, and for general working capital.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.