Canada Carbon Secures Major Funding Through Private Placement

Canada Carbon Inc. Financial Update

Canada Carbon Inc. is making headlines with the successful completion of a private placement, indicating a strong financial move for the company. The closing involved 15,000,000 flow-through units at a price of $0.02 per unit, which brought in gross proceeds of $300,000. Additionally, the company issued 12,500,000 flow-through shares, each priced at $0.02, bringing in another $250,000.

Details of the Offering

Each flow-through unit consists of one flow-through share and a common share purchase warrant. Holders of these warrants will have the opportunity to acquire common shares at a price of $0.07 per share for a period of five years from the issuance date. This arrangement offers potential growth for investors while simultaneously providing Canada Carbon with the capital necessary for exploration and development.

Usage of Proceeds

The funds raised from this offering are earmarked for eligible exploration expenditures, which are crucial for the company's growth strategy. The company plans to utilize this capital to enhance its exploration initiatives, thereby strengthening its position in the market.

Finder's Fees and Incentives

As a part of the offering, Canada Carbon compensated certain finders with a cash fee of $44,000 and granted them 2,200,000 common share purchase warrants. These finder’s warrants allow them to acquire shares at the same price of $0.07 for five years. This strategic move not only incentivizes the finders but also indicates confidence in the company’s potential going forward.

Regulatory Compliance

While the company is optimistic about its fundraising, it is important to note that all securities obtained through this placement are subject to a hold period. They must adhere to resale rules in compliance with applicable securities legislation. Additionally, these securities are not registered in the United States, limiting their sale and distribution to Canadian investors or those exempt from U.S. regulations.

Leadership Comments

Ellerton Castor, CEO and Director of Canada Carbon, expressed enthusiasm regarding the financing, stating that this is a crucial step for moving forward with ambitious exploration plans. The company is committed to maximizing the potential of its projects and continuing to provide value to its stakeholders.

Company Background

Canada Carbon Inc., trading under TSX-V: CCB, is focused on sustainable resource development and ensuring that its operational practices meet the highest environmental standards. The company has a strategic vision that aligns with responsible exploration and development practices.

Frequently Asked Questions

What is the recent financial update for Canada Carbon Inc.?

Canada Carbon Inc. recently closed a private placement for a total of $550,000, which includes flow-through units and shares to fund exploration activities.

What are flow-through shares and units?

Flow-through shares allow the company to transfer exploration expenses to investors, giving them potential tax benefits while raising capital for the company.

How will the funds from the offering be utilized?

The funds will primarily be used for eligible exploration expenditures aimed at enhancing Canada Carbon's exploration projects.

Who is leading Canada Carbon Inc.?

Ellerton Castor serves as the CEO and Director, guiding the company's strategic initiatives and growth plans.

Are there resale limitations on the securities issued?

Yes, all securities issued are subject to a hold period and must adhere to resale rules set by applicable securities legislation.

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