Zeolite miner Progressive Planet Solutions Inc (CVE:PLAN) (OTCMKTS:ASHXF) said Monday that it has raised C$275,000 in a private placement which was fully subscribed and non-brokered.
The Vancouver-based company said in a press release that it sold 5.5 million units at a price of C$0.05 per unit. Under the deal announced December 6, each unit comprises one common share and one common share purchase warrant of the company. Each warrant will entitle the holder to purchase one share at a price of C$0.06 per warrant share for 12 months from the date of closing.
The warrants are subject to an acceleration clause, which means that the issuer will have a right to move up the expiration date of the warrants if the average closing price of the shares is equal to or greater than C$0.10 for 10 consecutive trading days.
Shares traded at C$0.05 in Friday’s Canadian trading and US$0.04 on the OTC Markets.
"We are very pleased not only with how quickly the financing was filled, but also, with just under 50% of the financing taken by insiders, it demonstrates their belief in and commitment to the company," CEO Stephen Harpur said in a press release.
Progressive Planet said proceeds from the financing will be used for general corporate purposes and for continued product research and development. The company added that it did not pay any finders' fees in relation to the private placement.
The company operates its flagship Z1 zeolite mine in British Columbia, an equity interest in Snow Lake Resources, a 5% stake in the Lac Gueret Extensions graphite project in Quebec and a 100% interest in the Buckingham graphite project in Quebec.
Found in volcanic ash and known for its absorbency, zeolite is used in water purification.
Contact Dennis Fitzgerald at [email protected]