Pursuant to a standby purchase agreement dated between AIMCo and the Corporation (the “Standby Purchase Agreement), up to $5,825,000 of the Rights Offering has been guaranteed by AIMCo, assuming the fulfilment of all closing conditions to the Standby Purchase Agreement (the “Standby Commitment”), including that a minimum of $1,000,000 of subscription proceeds (the “Minimum Additional Proceeds”) have been received from holders of Rights other than AIMCo and its affiliates.ĪIMCo currently holds approximately 18.25% of Razor’s issued and outstanding Common Shares. Following completion of the Rights Offering and assuming the exercise of all Rights, Razor expects that there will be approximately 37,775,250 Common Shares outstanding. The final number of Rights to be issued will depend on the actual number of issued and outstanding Common Shares on the Record Date. An aggregate of 25,275,250 Rights are expected to be issued to subscribe for up to 12,500,000 Rights Units pursuant to the Rights Offering. There are currently 25,275,250 Common Shares outstanding. The expected closing date of the Rights Offering and the Recapitalization Transaction is June 12, 2023. Razor expects to raise gross proceeds of up to $10 million from the Rights Offering and intends to use the proceeds to fund certain production enhancement activities and for general working capital purposes. No fractional Rights Units, fractional Unit Shares or fractional Unit Warrants will be issued and, where the exercise of Rights would otherwise entitle the holder of Rights to a fractional Rights Unit, fractional Unit Share or fractional Unit Warrant, the holder’s entitlement will be reduced to the next lowest whole number of Rights Unit, Unit Share or Unit Warrant, as applicable, and no cash or other consideration will be paid in lieu thereof. A holder of Rights must pay $0.80 (the “Subscription Price”) to purchase one Right Unit. Holders of Common Shares will need to exercise 2.022 Rights to acquire one Right Unit. This advertisement has not loaded yet, but your article continues below. Each Unit Warrant will entitle the holder to purchase, subject to adjustment in certain circumstances, one Common Share at a price of $1.20 per Common Share for a period of five years from the date of issuance. Each Rights Unit will consist of one Common Share (a “Unit Share”) and one transferable Common Share purchase warrant (a “Unit Warrant”). Each whole Right will entitle the holder to subscribe for 0.494555 of a unit (a “Rights Unit”). Pursuant to the Rights Offering, each holder of Common Shares resident in a province or territory in Canada or in the United States (subject to restrictions in certain states) (the “Eligible Jurisdictions”) will receive one right (a “Right”) for each one Common Share held. The Rights Offering is being conducted in connection with Razor’s debt settlement agreement with Alberta Investment Management Corporation (“AIMCo”), pursuant to which AIMCo and Razor have agreed, subject to certain terms and conditions, to the settlement of all obligations owing by Razor to AIMCo under the senior second amended and restated loan agreement dated Februthrough the transfer (the “FutEra Share Transfer Transaction”) to AIMCo of equity interests held by Razor in FutEra Power Corp., as disclosed in Razor’s press release dated (the “Recapitalization Transaction”). The next issue of Sunrise presented by Vancouver Sun will soon be in your inbox. If you don't see it, please check your junk folder.
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