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eCobalt Announces C$26 Million Bought Deal Financing
Vancouver, BC, Canada – February 13, 2018 – eCobalt Solutions Inc. (the “Company” or “eCobalt”) (TSX: ECS; OTCQX: ECSIF) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by TD Securities Inc. (the “Underwriters”) pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 20,000,000 Units of the Company (the “Units”) at a price of C$1.30 per Unit (the “Offering Price”), for aggregate gross proceeds of C$26 million (the “Offering”). Each Unit shall consist of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one common share at an exercise price of C$1.95 for a period of eighteen (18) months following the Closing Date.
In addition, the Company has granted the Underwriters an option (the “Over-Allotment Option”), to purchase up to 3,000,000 additional Units at the Offering Price for a period of 30 days after and including the closing date. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering to the Company will be C$30 million.
The Units will be offered by way of a prospectus supplement and an accompanying short form base shelf prospectus of the Company, in all of the provinces in Canada, other than Quebec, in certain offshore jurisdictions, and in the United States on a private placement basis pursuant to applicable exemptions under the U.S Securities Act of 1933, as amended. The Offered Securities have not been and will not be registered under the United States Securities Act of 1933, as amended, and they may not be offered or sold in the United States or to a US person unless an exemption from registration is available. This press release does not constitute an offer to sell the Offered Securities in the United States or to US persons.
The Company intends to use the net proceeds of the Offering for advancing the development of the Company’s Idaho Cobalt project, supporting pre-construction activities at the mine and mill site in preparation for production, support of engineering for new mine design and for general working capital purposes.
Closing of the Offering is expected to occur on or about February 23, 2018.
About eCobalt Solutions Inc. (www.ecobalt.com)
eCobalt is a well-established Toronto Stock Exchange listed company committed to providing ethically produced, environmentally sound, battery grade cobalt products, essential for the rapidly growing rechargeable battery and renewable energy sectors, made safely, responsibly, and transparently in the United States. The Company’s ICP, located in East Central Idaho, is the only environmentally permitted, primary cobalt project in the United States. It is 100% owned by the Company’s wholly owned subsidiary, Formation Capital Corporation, U.S.
For more information visit www.ecobalt.com.
Investor Relations Contact Fiona Grant Leydier V.P., Investor Relations T: 604.682.6229 E: firstname.lastname@example.org
SOURCE eCobalt Solutions Inc.