Velox Energy confirms terms of $3.12-million financing

Executive Summary

• Velox Energy Materials Inc. has confirmed the terms of a non-brokered private placement financing originally announced on February 27, 2026.
• The company intends to raise up to $3,125,369.52 by issuing up to 89,296,272 units at a price of 3.5 cents per unit.
• A director intends to participate in the offering for up to 5.7 million units, constituting a related party transaction.

Key Details

• Financing Structure: Non-brokered private placement of up to 89,296,272 units.
• Price: 3.5 cents per unit.
• Gross Proceeds: Up to $3,125,369.52.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Each warrant is exercisable to acquire one additional common share at an exercise price of 5 cents per share for a period of 24 months from the date of issuance.
• Use of Proceeds:
  • Financing evaluation and due diligence of potential resource opportunities consistent with existing business strategy.
  • Current project commitments.
  • Regulatory, professional, and corporate administration costs.
  • General working capital purposes.
  • Approximately $500,000 allocated toward strategic opportunity evaluation.
  • No proceeds to be used for investor relations service providers or payments to non-arm's-length parties.
• Finder’s Fees: The company may pay finders' fees of 6% in cash and 6% in finder warrants to eligible finders.
  • Finder Warrants entitle the holder to acquire one common share at 5 cents per share for 24 months from the closing date.
• Related Party Transaction: A director intends to participate for up to 5.7 million units.
  • Relies on exemptions from formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (MI 61-101) under sections 5.5(b) and 5.7(1)(b).
  • Exemption conditions: Securities not listed on a specified market and fair market value of participation does not exceed 25% of market capitalization.
• Hold Period: All securities issued are subject to a statutory hold period of four months and one day from the date of issuance.
• Regulatory Approval: Completion is subject to receipt of all necessary regulatory approvals, including TSX Venture Exchange (TSX-V) approval.

Notable Quotes

• None provided in the text.