Arcus Development arranges additional financing

Executive Summary

• Arcus Development Group Inc. has increased its private placement offering, adding a second non-brokered tranche of $1 million to the previously announced $500,000, bringing total gross proceeds to $1.5 million.
• The financing is concurrent with a 1-for-10 share consolidation, which will reduce the pre-financing share count to 7,387,807 common shares.
• Following the consolidation and financing, the company will have 12,721,140 common shares issued and outstanding and intends to apply for Tier 2 listing on the TSX Venture Exchange.

Key Details

• Total Gross Proceeds: $1.5 million ($500,000 original tranche + $1 million additional tranche).
• Share Consolidation: 1-for-10 ratio (1 postconsolidation share for 10 existing shares).
• Pre-Financing Share Count: 7,387,807 common shares immediately following consolidation.
• Post-Financing Share Count: 12,721,140 common shares issued and outstanding.
• Original Offering Terms:
  • Price: 25 cents per postconsolidation unit.
  • Composition: 1 common share + 1 share purchase warrant per unit.
  • Maximum Units: Up to 2,000,000 units.
  • Warrant Terms: Exercisable for 2 years at $0.40 per share.
• Additional Offering Terms:
  • Price: 30 cents per postconsolidation unit.
  • Composition: 1 common share + 1 share purchase warrant per unit.
  • Maximum Units: Up to 3,333,333 units.
  • Warrant Terms: Exercisable for 2 years at $0.40 per share.
• Use of Proceeds: General working capital and financing work at the wholly owned Touleary project in the White Gold district of Yukon.
• Listing Status: Application to list as a Tier 2 company on the TSX Venture Exchange pending completion of consolidation and financings.