First Tellurium arranges $1.7-million private placement

Executive Summary

• First Tellurium Corp. has arranged a non-brokered private placement to raise up to $1.7 million.
• The company is selling up to 10 million units, with proceeds designated for general working capital.
• Insider participation is anticipated, which may constitute a related-party transaction exempt from certain valuation and approval requirements under Multilateral Instrument 61-101.

Key Details

• Total Proceeds: Up to $1.7 million.
• Units Offered: Up to 10 million units.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms: Each whole warrant entitles the holder to purchase one common share at an exercise price of 24 cents.
• Warrant Expiry: Two years following the close of the offering.
• Use of Proceeds: General working capital.
• Investor Type: Qualified purchasers.
• Regulatory Basis: Exemptions from prospectus and registration requirements under applicable securities legislation.
• Finder’s Fees: The company may pay eligible finders in cash, shares, and/or warrants as permitted by law and CSE policies.
• Hold Period: All securities are subject to a hold period of four months and one day from the date of issuance.
• Insider Participation: Insiders are expected to participate; this is expected to be exempt from formal valuation and minority shareholder approval requirements under MI 61-101 because 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.