Oracle Commodity arranges $250,000 private placement

Executive Summary

• Oracle Commodity Holding Corp. announced a non-brokered private placement of up to 5 million units at $0.05 per unit, targeting gross proceeds of $250,000.
• The transaction involves a significant insider subscription, with John Lee subscribing for up to 4 million units ($200,000), constituting a related party transaction.
• Proceeds are designated for general corporate purposes and working capital, subject to TSX Venture Exchange approval.

Key Details

• Transaction Structure: Non-brokered private placement of up to 5,000,000 units.
• Price: $0.05 per unit.
• Gross Proceeds: Up to $250,000.
• Unit Composition: Each unit consists of one common share and one transferable common share purchase warrant.
• Warrant Terms: Each warrant allows the holder to acquire one additional common share at an exercise price of $0.06 for a period of three years from issuance.
• Insider Participation: Insider John Lee intends to subscribe for up to 4,000,000 units for gross proceeds of $200,000.
• Regulatory Context: The insider subscription is a related party transaction under Multilateral Instrument 61-101. The company relies on exemptions from formal valuation and minority shareholder approval requirements (sections 5.5(a) and 5.7(1)(a)) as the fair market value of the insider's participation does not exceed 25% of the company's market capitalization.
• Use of Proceeds: General corporate purposes and continuing working capital.
• Hold Period: All shares issued (including those from warrant exercises) are subject to a statutory hold period of four months and one day from the date of issuance.
• Fees: No finders' fees are payable.
• Approval: Subject to acceptance by the TSX Venture Exchange.