Hampton Securities Limited (“Hampton Securities”) is pleased to announce the closing of a brokered private placement financing for MAX Power Mining Corp. (“MAX Power” or the “Company”) for aggregate gross proceeds of approximately C$20.5 million (the “Offering”). Hampton Securities acted as lead agent and sole bookrunner, with Eric Sprott as the lead order.
Under the Offering, MAX Power issued 15,805,624 units at C$1.30 per Unit for gross proceeds of C$20,547,311.20. Each Unit consisted of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at C$1.80 for a period of 24 months from closing.
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According to MAX Power, the net proceeds are expected to be used to advance the Company’s Lawson Natural Hydrogen Discovery on the Genesis Trend near Central Butte, Saskatchewan, including analytical testing, resource modeling, resource estimation, follow-up evaluation work, additional 2D and 3D seismic acquisition, further drilling, and general corporate purposes.
In connection with the Offering, Hampton Securities and eligible members of the selling group received a cash commission equal to 6.0% of the gross proceeds and were issued 948,337 non-transferable broker warrants. Each broker warrant entitles the holder to acquire one common share at the Offering price until March 20, 2028.
Hampton Securities commented:
“We are pleased to have acted as lead agent and sole bookrunner on this significant financing for MAX Power. The strong participation in the Offering, including the lead order from Eric Sprott, reflects meaningful market interest in the Company’s natural hydrogen strategy and the advancement of the Lawson Discovery.”
MAX Power also announced that Eric Sprott, through 2176423 Ontario Ltd., acquired 3,538,461 Units for total consideration of C$4,599,999.30. Certain directors, officers and insiders of MAX Power also participated, acquiring an aggregate of 3,620,010 Units. This participation constituted a related party transaction under MI 61-101, and MAX Power relied on applicable exemptions from formal valuation and minority shareholder approval requirements.
The Units were distributed pursuant to the listed issuer financing exemption under applicable Canadian securities laws in all provinces of Canada, except Québec, and in certain other jurisdictions, including the United States.
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