East West closes C$827K private placement for working capital
What's the deal? East West Minerals, a Vancouver-based company listed on the TSX Venture Exchange, has closed a non-brokered private placement raising gross proceeds of C$827,395. It issued 7,521,773 units at C$0.11 each, with each unit comprising one common share and half a warrant.
The terms: Each whole warrant lets the holder buy an additional common share at C$0.15 for three years from closing. No finder's fees were paid, and proceeds will fund working capital.
Who's backing it? Company insiders bought 1,227,500 units, a purchase that qualified as a related-party transaction under Multilateral Instrument 61-101. It was exempt from formal valuation and minority approval rules, as the insider stake stayed below 25% of market capitalisation.
All securities carry a four-month hold period and require final acceptance from the TSX Venture Exchange.
The signal: Small-cap issuers on the TSX Venture Exchange increasingly lean on non-brokered private placements and insider participation to raise modest amounts of working capital without paying broker fees.
Read more: wallstreet-online.de
