Scandium Canada closes $17.25-million offering

Executive Summary

• Scandium Canada Ltd. has closed a $17.3 million bought deal private offering, including the full exercise of the overallotment option.
• The company issued 78,409,300 units at a price of 22 cents per unit, raising aggregate gross proceeds of $17,250,046.
• Proceeds are designated for project expenditures at the Crater Lake project, development of proprietary Al-Sc alloys, and general corporate working capital.

Key Details

• Transaction Structure: Bought deal private offering led by Research Capital Corp. as lead underwriter and sole bookrunner, with Red Cloud Securities Inc. as part of the syndicate.
• Units Issued: 78,409,300 units.
• Price Per Unit: $0.22 CAD.
• Gross Proceeds: $17,250,046 CAD (including full exercise of over-allotment option).
• Warrant Terms (Investor): Each unit includes one common share and one common share purchase warrant. Each warrant allows the holder to acquire one common share at an exercise price of $0.30 CAD. Warrants expire on September 17, 2028.
• Use of Proceeds:
  1. Project expenditures and works on the Crater Lake project.
  2. Development and precommercialization work on proprietary Al-Sc (aluminum-scandium) alloys.
  3. General corporate and working capital purposes.
• Underwriter Compensation:
  • Aggregate cash commissions: $1,023,122.76 CAD.
  • Broker warrants: 4,650,558 non-transferable common share purchase warrants.
  • Broker Warrant Terms: Exercise price of $0.22 CAD per share, expiring September 17, 2028.
  • Broker Warrant Hold Period: Subject to a statutory restricted period of four months and one day.
• Regulatory Status: Issued in reliance on the listed issuer financing exemption (NI 45-106). Closing is subject to final approval of the TSX Venture Exchange.

Notable Quotes

• None provided in the text.