Ready Set Gold closes private placement of convertible debentures for $1.82M

Ready Set Gold Corp (CSE:RDY) (OTCPINK:RDYFF) (FRA:0MZ) said it has closed the first tranche of a private placement resulting in the issuance of 1,820 units priced at $1,000 each, raising a total of $1.82 million. 

The funds have been earmarked for working capital and the continued exploration at Ready Set Gold’s Ontario properties, the Northshore project, Hemlo Eastern Flanks project and the Emmons Peak project. 

A finder’s fee equal to 6% of the gross proceeds raised in the initial tranche is payable in connection with the closing of the private placement. 

READ: Ready Set Gold says will advance Northshore project with pending private placement of convertible debentures

As reported by Ready Set Gold, each unit consists of a $1,000 principal amount of 7.5% senior unsecured convertible debenture with a three-year term and 3,334 common share purchase warrants of the company.

Additionally, every debenture is convertible at any time after the issuance date at the option of the holder into common shares at a price of $0.27 per common share.

Following a 24-month period after issuance, if the shares trade at or above $0.90, based on the trailing 30-day volume-weighted average price, Ready Set Gold has the right to require the automatic conversion of the debentures at the conversion price by giving the holder 10 days written notice.

Subsequently, each debenture is repayable on demand with 10 days’ notice to the company in the event of a change of control.

As part of the private placement closing, Ready Set Gold will allow the investors to nominate a qualified and experienced person to sit on the board of directors. The new member will be announced upon the closing of the financing.

The date of the final closing is anticipated to be July 7, 2021.

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Story by ProactiveInvestors