Canadian Premium Sand Inc. Extends Warrants Expiry Date
Canadian Premium Sand Inc. Extends Warrants Expiry Date
Canadian Premium Sand Inc. (“CPS” or the “Company”) (TSXV: CPS) is pleased to announce its intention to extend the expiry date for approximately 26,494,908 warrants (the "Warrants") which allow the purchase of an equivalent number of common shares ("Common Shares") of the Company. Initially issued during a private placement that concluded on August 31, 2022, these Warrants were set to expire on August 31, 2024. The new expiry date will be December 31, 2024, extending the duration by four months. Importantly, all other terms associated with the Warrants, including the exercise price of $0.40 per Common Share, will remain unchanged.
Details on Warrant Expiry Extension
Should the volume-weighted average trading price of the Common Shares on the TSX Venture Exchange (the "TSXV") reach or exceed $0.90 per Common Share within a 30-day period, the Company may accelerate the expiration process. This acceleration can occur through notification to the holders of the Warrants, resulting in their expiration occurring 30 days post-notice.
Rationale Behind the Extension
The decision to extend the Warrant expiry is strategic, allowing holders additional time to exercise their Warrants. CPS remains in active discussions with the Province of Manitoba and the Government of Canada regarding potential financial incentives aimed at advancing its integrated patterned solar glass manufacturing facility in Selkirk, Manitoba. This initiative was first disclosed by the Company in previous communications.
Approval From TSXV Required
The extension of the Warrants awaits approval from the TSXV. The Company promises to release an updated announcement once this approval has been secured.
Legal Considerations on the Warrants
It should be noted that a portion of the Warrants—specifically 9,448,419—are held by parties classified as "related parties" of CPS. As such, the amendment to extend the Warrants' expiry date may be recognized as a "related party transaction" in accordance with Multilateral Instrument 61-101 and TSXV Policy 5.9. Fortunately, exemptions from formal evaluation and minority approval requirements may apply since the fair market value of the interested parties' Warrants does not surpass 25% of the Company’s market capitalization.
About Canadian Premium Sand Inc.
Canadian Premium Sand Inc. is at the forefront of manufacturing ultra high-clarity patterned solar glass through a facility located in Selkirk, Manitoba. This facility will leverage high-purity, low-iron silica sand sourced from the Company’s wholly-owned Wanipigow quarry leases, complemented by renewable hydroelectric power from Manitoba. The Company is a recognized reporting issuer across Ontario, Alberta, and British Columbia. It trades on the TSXV under the ticker symbol "CPS".
Contact Information
For more inquiries, please contact:
Glenn Leroux
President and Chief Executive Officer
glenn.leroux@cpsmail.com
Cam Deller
Chief Financial Officer
cam.deller@cpsmail.com
Investor Relations
IR@cpsmail.com
587.355.3714
Website: www.cpsglass.com
Frequently Asked Questions
What are the new expiry dates for the Warrants?
The new expiry date for the Warrants is December 31, 2024.
Why did Canadian Premium Sand extend the expiry date?
The extension provides Warrant holders with more time to exercise their Warrants amid ongoing discussions for financial incentives for their solar glass manufacturing initiative.
What happens if the trading price of Common Shares increases?
If the 30-day volume-weighted average trading price of the Common Shares is $0.90 or higher, CPS may accelerate the expiry of the Warrants.
Is approval needed for the extension?
Yes, the extension of the Warrants is subject to approval from the TSXV.
What type of project is Canadian Premium Sand developing?
The Company is developing a patterned solar glass manufacturing facility, utilizing high-purity silica sand and renewable energy sources.
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