Canadian Premium Sand Inc. Announces Extension of Warrants Expiry Date
Canadian Premium Sand Inc. (“CPS” or the “Company”) (TSXV: CPS) is excited to share its plan to extend the expiry date for approximately 26,494,908 warrants (the "Warrants"). These Warrants enable the purchase of an equal number of common shares ("Common Shares") of the Company. Originally issued during a private placement that wrapped up on August 31, 2022, these Warrants were set to expire on August 31, 2024. The new expiry date has been pushed back to December 31, 2024, giving holders an additional four months. Importantly, all other terms related to the Warrants, including the exercise price of $0.40 per Common Share, will remain unchanged.
Warrant Expiry Extension Details
If the volume-weighted average trading price of the Common Shares on the TSX Venture Exchange (the "TSXV") reaches or exceeds $0.90 per Common Share within a 30-day timeframe, the Company has the option to accelerate the expiration process. This means they can notify the Warrant holders, leading to the Warrants expiring 30 days after the notice is given.
Reasons for the Extension
The choice to extend the Warrant expiry is a strategic move, allowing holders more time to exercise their Warrants. CPS is actively engaging with the Province of Manitoba and the Government of Canada to explore potential financial incentives that would support the development of its integrated patterned solar glass manufacturing facility in Selkirk, Manitoba. This initiative was previously mentioned in the Company’s communications.
TSXV Approval Needed
The extension of the Warrants is pending approval from the TSXV. The Company will provide an update once this approval is obtained.
Legal Aspects of the Warrants
It's important to note that a portion of the Warrants—specifically 9,448,419—are held by parties considered "related parties" of CPS. Consequently, the extension of the Warrants' expiry date may be categorized as a "related party transaction" under Multilateral Instrument 61-101 and TSXV Policy 5.9. Fortunately, exemptions from formal evaluation and minority approval requirements might apply since the fair market value of the involved parties' Warrants does not exceed 25% of the Company’s market capitalization.
About Canadian Premium Sand Inc.
Canadian Premium Sand Inc. is leading the way in the production of ultra high-clarity patterned solar glass at its facility in Selkirk, Manitoba. This facility will utilize high-purity, low-iron silica sand sourced from the Company’s wholly-owned Wanipigow quarry leases, along with renewable hydroelectric power from Manitoba. The Company is recognized as a reporting issuer in Ontario, Alberta, and British Columbia and trades on the TSXV under the ticker symbol "CPS".
Contact Information
If you have any questions, please reach out to:
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 allows Warrant holders more time to exercise their Warrants while discussions for financial incentives for their solar glass manufacturing initiative are ongoing.
What happens if the trading price of Common Shares increases?
If the 30-day volume-weighted average trading price of the Common Shares reaches $0.90 or higher, CPS may choose to accelerate the expiry of the Warrants.
Is approval needed for the extension?
Yes, the extension of the Warrants requires approval from the TSXV.
What type of project is Canadian Premium Sand developing?
The Company is working on a patterned solar glass manufacturing facility that will utilize high-purity silica sand and renewable energy sources.
