Vancouver, B.C., April 30, 2021 – Vancouver, British Columbia – Pure Extraction Corp. (“Purx” or the “Company”) has closed its previously announced and fully subscribed non-brokered private placement of units for gross proceeds of $3.0 million. The private placement consists of 7.5 million units at $0.40 per unit, where each unit consists of one common share and a half of a common share purchase warrant. Each full warrant is exercisable at $0.90 into one common share, for a period of two years.
In addition, the Company has issued unsecured convertible debentures for gross proceeds of up to $2.0 million. Each convertible debenture will bear interest from their issue date at 8 per cent per annum and mature on the date that is 24 months. The principal amount of the debenture will be convertible into units of the Company at the option of the holder at any time prior to the close of business on the last business day immediately proceeding the maturity date. The conversion price per unit will be $0.40 per unit. The unit is comprised of a share and a half of a common share purchase warrant, each full warrant is exercisable at $0.90 into one common share, for a period of two years.
All securities issued pursuant to the unit financing and the convertible debenture financing will be subject to a four-month plus a day hold period under applicable securities laws in Canada.
In connection with the financings, the Company paid finder’s fees to arm’s length third parties consisting of $400,000 cash and issued 1,000,000 finder’s warrants. Each finder’s warrant is exercisable at $0.40 into one common share for a period of two years.
As per Multilateral Instrument 61-101, no insiders took part in the financing.
The Company intends to use the net proceeds from the financing for working capital and general corporate purposes.
On behalf of the Board of Directors of
FIRST HYDROGEN CORP.
Chairman & Chief Executive Officer
Balraj Mann, Chairman & Chief Executive Officer
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