Umbral Energy plans $2.04-million private placement
UMBRAL ENERGY Corp. is planning a non-broker ed private placement consisting of up to 34 million units at a purchase price of six cents per unit to raise gross proceeds of up to $2.04-million. Each unit will consist of one common share in the capital of the company and one share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share in the capital of the company for a period of two years, at a purchase price of 10 cents per share.
The company may pay a finder’s fee in connection with the private placement within the amount permitted by the policies of the exchange. Certain directors, officers and insiders of the company may participate in the private placement. The private placement is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the exchange. All securities issued in connection with the private placement will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
The warrants are subject to an accelerated expiry if, any time following the expiration of the four-month hold period, the shares trade at a price equal to or greater than 20 cents on the Canadian Stock Exchange or such other market as the shares may trade, from time to time, for 10 consecutive trading days, in which event the subscriber may, at the issuer’s election, be given notice that the warrants of the issuer will expire 30 days following the date of such notice. The warrants may be exercised by the holder during the 30-day period between the notice and the expiration of the warrants.
The net proceeds from the private placement will be used by the company to pay the balance of purchase price for Falkland, B.C., property, completion of phase 1 of the buildout prior to an award of a licence to cultivate, finance a work program for Letourneur property and for general working capital.
About Umbral Energy Corp. The company is currently listed as a junior resource issuer having mineral exploration projects. The company is considering other activities to increase shareholder value, including non-resource projects. The company has an interest in PhyeinMed, which has applied for a licence from Health Canada to legally grow and sell medical marijuana.
We seek Safe Harbor.
Jagdip Bal, Bradley Todd Culver, Clinton B Sharples
(UMB) Shares: 78,398,146