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Ascot Resources announces rights offering
Ascot Resources Ltd, a Canadian mining company, has announced a rights offering that aims to generate up to C$14,871,517. This initiative is intended to improve the company’s financial position and address existing debts.
The offering allows existing shareholders to purchase additional shares at a price of C$0.01 each. This strategy is part of a broader effort to strengthen Ascot’s capital base while ensuring that shareholders can participate in the company’s future growth.
Details of the rights offering
Ascot Resources will issue a total of 1,487,151,720 rights to its shareholders as of the record date. Each shareholder will receive one right for every common share owned. By exercising these rights, shareholders can acquire new shares at the subscription price, contributing to the company’s growth.
Subscription and expiry information
Shareholders must act before the expiry time at 5:00 p.m. Toronto time on the specified date to take advantage of this opportunity. Rights not exercised by this deadline will become invalid. Additionally, shareholders who fully utilize their rights will be eligible for an extra subscription privilege, allowing them to purchase any remaining shares after the initial offering.
Standby arrangement and closing timeline
Ascot Resources has secured a standby commitment from Fiore Management and Advisory Corp. to purchase any unclaimed rights shares. This agreement ensures that Ascot can achieve its funding targets, even if some shareholders opt out.
The closing of this rights offering is expected around the specified date. Following this, Ascot plans to implement a 50:1 share consolidation. This consolidation will occur on a pre-offering basis, meaning the rights offering will conclude before the consolidation takes effect.
Proceeds usage
The funds raised from this rights offering are primarily designated for settling outstanding debts with creditors. This step is crucial for Ascot as it seeks to stabilize its financial standing while preparing for future opportunities in the mining sector.
Eligibility and further information
The rights offering is available solely to shareholders residing in eligible jurisdictions across Canada. Registered shareholders must submit completed subscription forms along with the required payment to Computershare Investor Services Inc., the designated rights agent.
Shareholders holding shares through intermediaries will receive specific instructions from those intermediaries on how to participate in the offering.
Future developments
Upon completion of the offering, Ascot Resources expects to have approximately 2,974,303,440 common shares outstanding. The newly issued rights shares will account for about 50% of this total. This strategic initiative aims to strengthen Ascot’s ongoing projects, particularly the Premier Gold Mine in British Columbia’s Golden Triangle.
Shareholders and interested parties can find further details in the rights offering circular and additional documentation available on the SEDAR+ platform. This information will outline the specific terms and conditions associated with the offering.
The implications
Ascot Resources is making significant moves to secure its financial future through this rights offering. This initiative allows shareholders to engage directly with the company’s growth trajectory. As the mining landscape evolves, such strategies are essential for Ascot to maintain competitiveness in the sector.
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