Oracle Commodity closes $280,000 private placement

Executive Summary

• Oracle Commodity Holding Corp. has closed a non-brokered private placement of 8 million units, raising $280,000 in gross proceeds.
• The transaction involves insider participation, with a director and officer subscribing for 1.75 million units ($61,250), constituting a related-party transaction under Multilateral Instrument 61-101.
• Proceeds are designated for working capital and general corporate purposes, with specific restrictions on using funds for the pending acquisition of a royalty from U.S. Fluorspar LLC until TSX Venture Exchange approval is granted.

Key Details

• Transaction Structure: Non-brokered private placement of 8,000,000 units.
• Price: 3.5 cents per unit.
• Gross Proceeds: $280,000.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Each warrant allows the purchase of one additional share at an exercise price of 6 cents per share for a period of three years from issuance.
• Insider Participation: A director and officer subscribed for 1,750,000 units for gross proceeds of $61,250.
• Regulatory Exemptions: The company relies on exemptions from formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of securities issued to insiders does not exceed 25% of the company's market capitalization.
• Use of Proceeds: Working capital and general corporate purposes.
• Hold Period: Securities are subject to a regulatory four-month-and-one-day hold period.
• Finders' Fees: None paid.
• Restrictions on Proceeds: No proceeds will be used for the cash consideration of the acquisition of a 2% royalty from U.S. Fluorspar LLC until TSX Venture Exchange approval is obtained. No proceeds will be paid to non-arm's-length parties or for investor relations activities, nor for any specific use representing 10% or more of gross proceeds.

Notable Quotes

• None provided in the text.