American Atomics Announces Closing of Private Placement of Units

Executive Summary

• American Atomics Inc. closed an upsized non‑brokered private placement of 7,680,000 units for aggregate gross proceeds of $1.92 million.
• The company also issued 322,000 units to a creditor in settlement of $80,500 of outstanding debt (Debt Settlement).
• Net proceeds will be used to pursue a definitive agreement with Big Indian Prospectors LLC, as well as working capital and general & administrative expenses.

Key Details

• Offering Size: 7,680,000 Units; Gross Proceeds: $1,920,000.
• Unit Composition: 1 common share + ½ share purchase warrant per unit.
• Warrant Terms: Exercise price $0.35 per share; exercisable for 24 months from issuance.
• Debt Settlement: 322,000 Units issued to Terry Lynch (Creditor) in exchange for cancellation of $80,500 debt; same terms as the private placement units.
• Insider Participation: Directors subscribed for 330,000 Units for $82,500 gross proceeds (≈25 % of market cap exemption under MI 61‑101).
• Use of Proceeds: Fund anticipated transaction with Big Indian Prospectors LLC, working capital, and G&A expenses.
• Hold Period: All units subject to a four‑month hold period per securities law requirements.
• Finder Compensation: $30,100 paid in cash commissions (7 % of gross proceeds from purchasers introduced by finders).

Notable Quotes

“We are very pleased to have closed this upsized financing and for the strong market interest that it received. We look forward to now working to complete our definitive agreement with Big Indian in the days ahead and continuing to push forward with our plans for American Atomics.” – David Mitchell, CEO