First Tellurium increases financing to $2.38-million

Executive Summary

• First Tellurium Corp. has completed the first tranche closing of its non-brokered private placement, issuing nearly 5 million units for gross proceeds of approximately $848,733.
• Due to investor interest exceeding the initial cap, the company is increasing the total offering size to up to 14 million units, raising the maximum gross proceeds to $2.38 million.
• The offering price is 17 cents per unit, with each unit comprising one common share and one-half of a common share purchase warrant exercisable at 24 cents.

Key Details

• First Tranche Closing:
  • Units Issued: 4,992,545 units.
  • Gross Proceeds: $848,732.65.
  • Finders' Fees Paid: $1,700.
  • Hold Period: Expires July 18, 2026.
• Increased Offering Size:
  • New Maximum Units: Up to 14 million units (including the first tranche).
  • New Maximum Gross Proceeds: $2.38 million.
  • Price Per Unit: 17 cents.
• Security Structure:
  • Each unit consists of one common share and one-half of one common share purchase warrant.
  • Warrant Exercise Price: 24 cents per common share.
  • Warrant Term: Two years from the date of issue.
• Use of Proceeds: General working capital.
• Regulatory & Insider Participation:
  • Offered to qualified purchasers relying on prospectus and registration exemptions.
  • Insiders are expected to participate; this is considered a related party transaction.
  • Insider participation is exempt from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, as the company is not listed on specified exchanges and the fair market value of securities distributed to insiders is not expected to exceed 25% of market capitalization.
• General Hold Period: All securities issued under the offering are subject to a hold period of four months and one day from issuance.