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Ascot Resources Ltd., a prominent entity in the mining industry, has announced its plan to undertake a rights offering aimed at raising gross proceeds of up to C$14,871,517. This initiative, referred to as the Rights Offering, is intended to strengthen the company’s financial footing and support its operational goals.
Details of the rights offering
As part of the proposed Rights Offering, Ascot will distribute approximately 1,487,151,720 rights to current holders of common shares as of the record date. Shareholders will receive one right for each common share they own. These rights will allow shareholders to acquire one additional common share, known as a Rights Share, at a nominal price of C$0.01.
The company’s common shares are traded on the NEX Board of the TSXV Venture Exchange. However, the rights will not be listed on any stock exchange. The rights expire at 5:00 p.m. Toronto time on a specified date. Any rights not exercised by this deadline will become void.
Subscription privileges for shareholders
Shareholders who fully exercise their rights will have the opportunity to acquire additional rights shares through the Additional Subscription Privilege. This privilege allows eligible shareholders to purchase any shares that remain unclaimed before the expiration time, ensuring that those who actively participate in the offering can maximize their investment.
Ascot has secured a standby agreement with Fiore Management and Advisory Corp. This agreement commits Fiore to purchase any rights shares not taken up by existing shareholders. Amended on a specified date, this arrangement adds an extra layer of security for the company’s financial objectives.
Process and timeline
As part of the rights offering process, Ascot plans to file a detailed circular on SEDAR+. This document will outline the terms and conditions of the offering and will be accessible to shareholders. A notice regarding the rights offering will be distributed to eligible shareholders around a specified date. The company expects
The rights are available to shareholders residing in all provinces and territories of Canada. Those wishing to exercise their rights must submit completed subscription forms and payment to Computershare Investor Services Inc., the designated rights agent, before the expiration time. Shareholders who hold their shares through intermediaries, such as banks or brokers, will receive specific instructions on how to participate.
Future implications and plans
Upon the successful completion of the rights offering, Ascot is projected to have approximately 2,974,303,440 common shares in circulation, with shares issued through this offering accounting for around 50% of the total shares outstanding. Additionally, the company plans to implement a 50:1 share consolidation following the rights offering, which will adjust the total number of shares in circulation.
Ascot is set to launch a brokered private placement of subscription receipts at a market-driven price, alongside its rights offering. This placement will take place after the share consolidation, pending approval from the TSXV. It is important to note that if the anticipated funding from this private placement does not materialize, the company may need to explore restructuring under the Companies’ Creditors Arrangement Act.
Utilization of funds and strategic outlook
The net proceeds from the rights offering are designated for settling outstanding debts to creditors, which will enhance Ascot’s operational capabilities. The company is dedicated to using these funds strategically to ensure long-term sustainability and growth.
Shareholders and potential investors are advised to review the upcoming notice and circular regarding the rights offering. These documents will be accessible on the company’s SEDAR+ profile and its official website. It is essential for investors to examine these materials carefully before making any investment choices.
This announcement does not constitute an offer to sell or solicit purchases of securities in jurisdictions where such offers would be unlawful. The securities mentioned will not be registered under U.S. securities laws and cannot be sold in the United States without appropriate registration or an exemption.
About Ascot Resources
Ascot Resources Ltd. is a Canadian mining company headquartered in Vancouver, British Columbia. The company trades its shares on the NEX under the ticker AOT.H and on the OTCQB as AOTVF. Ascot is the sole proprietor of the Premier Gold Mine, situated in the mineral-rich Golden Triangle region of northwestern British Columbia, an area recognized for its significant mineral deposits.
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