VANCOUVER, BRITISH COLUMBIA–(Marketwired – May 18, 2017) –
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
Royalty North Partners Ltd. (TSX VENTURE:RNP) (“RNP” or the “Company“) is pleased to announce that further to its press releases dated April 12, 2017 and May 5, 2017, the Company has further increased its non-brokered private placement financing (the “Private Placement“) of units (the “Units“) at a price of $0.17 per Unit to approximately $3.93 million and has closed the second tranche of the Private Placement (the “Second Tranche“) by issuing 6,833,437 Units for gross proceeds of approximately $1.16 million. In the aggregate, a total of 23,116,793 Units were issued pursuant to the Private Placement for gross proceeds of approximately $3.93 million.
Each Unit consisted of one common share in the capital of the Company (a “Unit Share“) and one-half of one common share purchase warrant. Each whole warrant (a “Warrant“) entitles the holder to purchase, until September 1, 2021, one additional common share of the Company (a “Warrant Share“) at an exercise price of $0.25. The Warrants are governed by the terms of a warrant indenture dated November 24, 2016 between the Company and TSX Trust Company as warrant agent and a supplement thereto dated May 5, 2017 (the “Warrant Indenture“). The Unit Shares, the Warrants and the Warrant Shares issued under the Second Tranche are subject to a hold period and may not be traded until September 19, 2017, except as permitted by applicable securities legislation and the policies of the TSX Venture Exchange (the “TSXV“).
Proceeds of the Private Placement will be used to repay the shareholder loans used to facilitate an early close of the transaction with SST Construction, LLC (please see the Company’s press release dated May 5, 2017 for further details), for transaction expenses and for working capital purposes.
The Company will pay a commission to certain arm’s length finders in connection with the Second Tranche. Each of Sprott Global Resource Investments, Ltd., Sprott Capital Partners, a division of Sprott Private Wealth LP, Canaccord Genuity Corp. and DGW Capital Corp. will receive a 6% cash commission for Units placed by them.
This press release does not constitute an offer to purchase securities. The securities offered in the Private Placement have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the benefit or account of, a U.S. person, except pursuant to an available exemption from such registration requirements.
On behalf of the Company,
“Justin Currie“
Chief Executive Officer and Director
About Royalty North Partners Ltd.
Royalty North Partners is a Vancouver, BC based, TSXV-listed (RNP) company focused on creating a diversified portfolio of cash flowing royalties by providing financing to private businesses operating in the “mid-market”. RNP is led by a seasoned board and management team with a successful track record of experience in royalty financing, capital markets transactions and private company operations. RNP is targeting royalty investments in companies with stable cash flow in non-resource based sectors looking for growth/acquisition capital, recapitalization or succession liquidity.
Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact contained herein, the information presented constitutes “forward looking statements” within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. Such forward-looking statements include but are not limited to the use of the proceeds of the Private Placement. The words “may”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, “target” and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company’s expectations as of the date of this news release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required by law. RNP does not provide any representation as to its comparability with other companies in similar industries including, but not limited to, Alaris Royalty Corp., Diversified Royalty Corp., Founders Advantage Capital Corp., Sandstorm Gold Ltd., and Franco-Nevada Corporation.
Chief Investment Officer and Director
Royalty North Partners Ltd.
(604) 628-1101
www.royaltynorth.com