Sokoman Minerals Corp. (“Sokoman” or “the Company”) (TSX.V: SIC) (OTCQB: SICNF) today announces that it is partially restructuring its non-brokered private placement of units (the “Private Placement”) for gross proceeds of $6,500,000 announced on March 19, 2021.
Eric Sprott, the Company’s largest shareholder to date, proposed to subscribe for $5,000,000 worth of units, which, together with his previous investments into Sokoman, would have taken his position above 20% of the Company’s stock ownership. Pursuant to its policies, the TSX Venture Exchange (“the Exchange”) requires shareholder approval for Mr. Sprott to exceed the 20% threshold. Accordingly, the Company will divide Mr. Sprott’s investment into two tranches: a) $4,919,647 will be taken down as part of the Private Placement, and b) $980,353 of his investment will be held in trust pursuant to a separate financing via subscription receipts which will convert into units with the same terms as that of the Private Placement upon the Company receiving shareholder approval for Mr. Sprott to go over the 20% threshold (the “Subscription Receipts Financing”). The Company has scheduled an Extraordinary General Meeting (“EGM”) for May 18, 2021 for the purposes of obtaining the required shareholder approval.
Pursuant to the Subscription Receipts Financing, each subscription receipt will be issued at a price of $0.26 and after obtaining shareholder approval for Mr. Sprott to exceed the 20% threshold, each subscription receipt will be converted automatically into units having the same terms as the Private Placement with each unit consisting of one (1) common share in the capital of the Company and one half (½) of a common share purchase warrant. Each full warrant will be transferable in accordance with applicable Securities Laws and will entitle the holder to purchase one (1) additional share for $0.40 at any time prior to 4:30 p.m. (Vancouver time) twenty-four (24) months after the closing date.
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