Fredonia Mining Inc. Announces Intention to Amend Price of Previously Issued Warrants and Implement Early Warrant Exercise Incentive Program
Executive Summary
- Fredonia Mining proposes to reduce the exercise price of its $1.40 and $0.50 common share purchase warrants to $0.45 and to implement an early‑exercise incentive program for its $0.30 warrants.
- The amendments require consent from warrant holders and TSX Venture Exchange approval; if approved, up to 6.48 million additional common shares could be issuable through the incentive warrants.
- Insider holdings are limited to 10 % of each warrant series, with proportional reductions/incentives applied only to a portion of insider‑held warrants.
Key Details
- Warrant Series Overview (effective basis):
- $1.40 Warrants – 4,818,398 outstanding; exercise price proposed reduction to $0.45.
- $0.50 Warrants – 1,755,448 outstanding; exercise price proposed reduction to $0.45 (applies only to up to 175,544 insider‑held warrants).
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$0.30 Warrants – 6,666,667 outstanding; early‑exercise incentive program targeting up to 666,667 insider‑held warrants.
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Accelerated Expiry Clause for $1.40 Warrants:
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If the common share closing price ≥ $0.57 for ten consecutive trading days, the remaining exercise period will compress to 30 days, beginning no later than seven calendar days after the tenth qualifying day.
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Insider Holdings:
- $0.50 Warrants – 456,824 held by insiders (≈10 %); price reduction limited to 175,544 warrants on a pro‑rata basis.
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$0.30 Warrants – 853,333 held by insiders (≈13 %); incentive program limited to 666,667 warrants on a pro‑rata basis.
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Early Exercise Incentive Program for $0.30 Warrants:
- Incentive Period: Dec 18 2025 – Jan 19 2026 (30 calendar days).
- Holders who exercise during this period receive one “Incentive Warrant” per exercised $0.30 warrant, each granting the right to purchase an additional common share at $0.60 for 24 months.
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Anticipated issuable shares from fully exercised incentive warrants: ~6,480,001 common shares (subject to regulatory approvals and hold periods).
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Regulatory & Approval Requirements:
- Consent of relevant warrant holders required for amendment to $1.40 warrants.
- TSX Venture Exchange final approval needed for the incentive program and any accelerated expiry provisions.
Notable Quotes
(No direct quotes were provided in the release.)