Atlas Salt closes $8.7-million private placement

Executive Summary

• Atlas Salt Inc. has closed a brokered private placement raising gross proceeds of $8,704,400.
• The company issued 10,880,500 common shares at a price of $0.80 per share, with no hold period applicable under the Listed Issuer Financing Exemption.
• A strategic investor participated in the offering, aligning with the company's Great Atlantic salt project, while net proceeds are designated for civil engineering works and general corporate purposes.

Key Details

• Gross Proceeds: $8,704,400
• Net Proceeds Use: Civil engineering work to advance the Great Atlantic salt project toward development, and general corporate and working capital purposes.
• Shares Issued: 10,880,500 common shares.
• Price Per Share: $0.80 CAD.
• Regulatory Framework: Issued pursuant to National Instrument 45-106, Prospectus Exemptions, specifically Part 5A of NI 45-106 as amended by CSA Coordinated Blanket Order 45-935 (Listed Issuer Financing Exemption).
• Hold Period: None; shares are not subject to a hold period under applicable Canadian securities laws.
• Strategic Investor: A strategic investor participated, citing alignment with the long-term strategic objectives and the Great Atlantic salt project.
• Agent Fees:
  • Cash Fee: $522,264 paid to agents (Raymond James Ltd. and Ventum Financial Corp. as co-lead agents/joint bookrunners, along with a syndicate including Desjardins Capital Markets).
  • Warrants Issued to Agents: 652,830 compensation warrants.
  • Warrant Terms: Each warrant entitles the holder to acquire one common share at the offering price ($0.80) for a period of 24 months from the closing date.
• Insider Participation: Certain insiders participated in the offering, constituting a related party transaction under Multilateral Instrument 61-101.
• MI 61-101 Exemptions: The company relied on exemptions from formal valuation and minority shareholder requirements (sections 5.5(a) and 5.7(1)(a)) because the fair market value of securities issued and consideration paid by insiders did not exceed 25% of the company's market capitalization.

Notable Quotes

• Nolan Peterson, CEO: "The commitment and interest of both new and existing shareholders underscores the strength of the results of our recent updated feasibility study, which demonstrated improved project economics and cash flow potential at Great Atlantic, in conjunction with significant derisking. The participation of this strategic investor marks a major milestone for the company and further reinforces our confidence in the direction we are taking with the Great Atlantic salt project."