Oracle Commodity arranges $100,000 private placement

Executive Summary

• Oracle Commodity Holding Corp. announced a non-brokered private placement to raise up to $100,000 by selling up to 2,000,000 units at $0.05 per unit.
• A company director is subscribing for up to 1,000,000 units (up to $50,000), constituting a related party transaction subject to specific exemptions under Multilateral Instrument 61-101.
• Each unit includes one common share and one transferable warrant exercisable at $0.06 for three years; net proceeds are intended for general corporate purposes.

Key Details

• Financing Structure: Non-brokered private placement.
• Gross Proceeds: Up to $100,000.
• Unit Price: $0.05 per unit.
• Total Units Offered: Up to 2,000,000 units.
• Unit Composition: Each unit consists of one common share and one transferable common share purchase warrant.
• Warrant Terms:
  • Exercise Price: $0.06 per share.
  • Duration: Three years from issuance.
  • Quantity: One warrant per unit (entitling holder to purchase one additional common share).
• Insider Subscription:
  • Subscriber: A director of the company.
  • Quantity: Up to 1,000,000 units.
  • Gross Proceeds from Insider: Up to $50,000.
  • Regulatory Status: Classified as a related party transaction under Multilateral Instrument 61-101.
  • Exemptions: Relies on sections 5.5(a) and 5.7(1)(a) of MI 61-101 for exemptions from minority shareholder approval and formal valuation requirements, as the transaction value is not anticipated to exceed 25% of the company's market capitalization.
  • Reporting: A material change report will be filed regarding the related party transaction.
• Finder’s Fees: The company may issue finders' units, each consisting of one share and one non-transferable warrant (exercisable at $0.06 for three years).
• Conditions Precedent: Subject to receipt of all necessary approvals, including approval from the TSX Venture Exchange.
• Hold Period: Securities issued (including finders' units) are subject to a hold period of four months and one day from the closing date.
• Use of Proceeds: General corporate purposes.