Velox Energy Materials Inc. Confirms Terms of Proposed Non-Brokered Private Placement Financing
Rhea-AI Summary
Velox Energy Materials (symbol CUIRF) confirms terms of a non-brokered private placement to issue up to 89,296,272 Units at $0.035 per Unit for gross proceeds up to $3,125,369.52. Each Unit includes one common share and one warrant exercisable at $0.05 for 24 months.
Net proceeds will fund due diligence on resource opportunities, corporate costs, and general working capital, with approximately $500,000 allocated to strategic opportunity evaluation. Finder's fees of 6% cash and 6% finder's warrants may apply. A director may subscribe for up to 5,700,000 Units.
Positive
- Raises up to $3,125,369.52 via the Unit offering
- Allocates $500,000 specifically for strategic opportunity evaluation
- Each Unit includes a Warrant exercisable at $0.05 for 24 months
Negative
- Issuance of up to 89,296,272 Units may cause material dilution to shareholders
- Finder's fees of 6% cash plus 6% finder's warrants increase issuance costs
- Director's participation of up to 5,700,000 Units is a related-party transaction
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - March 6, 2026) - Velox Energy Materials Inc. (TSXV: VLX) ("Velox" or the "Company") confirms the terms of its previously announced non-brokered private placement financing, originally announced on February 27, 2026. The Company proposes to complete a non-brokered private placement financing (the "Private Placement") of up to 89,296,272 units of the Company (the "Units") at a price of
Each Unit will consist of one common share in the capital of the Company (each, a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant will be exercisable to acquire one additional Common Share at a price of
The net proceeds of the Offering will be used to fund the evaluation and due diligence of potential resource opportunities consistent with the Company's existing business strategy, current project commitments, regulatory, professional and corporate administration costs, and for general working capital purposes. The Company plans on allocating approximately
In connection with the Private Placement, the Company may pay finder's fees of
A director of the Company intends to participate in the Private Placement for up to 5,700,000 Units. Such participation will constitute a related party transaction within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to Sections 5.5(b) and 5.7(1)(b), respectively, as the Company's securities are not listed on a specified market and the fair market value of the participation does not exceed
In accordance with applicable Canadian securities laws, all securities issued pursuant to the Private Placement will be subject to a hold period of four months and one day from the date of issuance.
Completion of the Private Placement and payment of any finder's fees remain subject to the receipt of all necessary regulatory approvals, including approval of the TSX Venture Exchange.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Approved by the Board of Velox Energy Materials Inc.
Nicole Morcombe
Director
Email: nmorcombe@veloxmaterials.com.au
1 (416) 214-7577
Velox Energy Materials is a publicly traded energy materials company developing and progressing high-value assets in resource and research-friendly jurisdictions. The Company's priority focus is the advanced NQV Project in Queensland, Australia. The NQV Project hosts the Cambridge Deposit with a CIM compliant Indicated Mineral Resource of 61.33 Mt @
The Company additionally owns Kotai Energy and the option to acquire
Forward-Looking Statements
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions with respect to, among other things, the proposed amendments to the terms of the Warrants.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, market uncertainty and the risk that the Exchange will not approve the amendments to the terms of the Warrants.
In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, that the Company will receive approval from the Exchange to amend the terms of the Warrants.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/286452