Rainy Mountain Announces Closing of Rights Offering
West Vancouver, British Columbia – March 2, 2017 – Rainy Mountain Royalty Corp. (the “Company” or “RMO”) announces the closing of its previously announced rights offering. Under the rights offering, on March 1, 2017 (the “Closing Date”), 13,547,056 units of the Company (the “Units”) were distributed at a price of $0.10 per Unit for gross proceeds to the Company of $1,354,705. Each Unit consists of one common share of the Company and of one-half of one common share purchase warrant, with each whole warrant exercisable into one common share of the Company for a period of 24 months from the Closing Date, at a price of $0.15 for a period of 12 months from the Closing Date and at a price of $0.25 thereafter.
The rights offering was over-subscribed, with 15,949,964 rights exercised under the basic subscription privilege entitling holders to acquire 7,974,982 Units and with an additional 8,921,029 Units subscribed for by rights holders under the additional subscription privilege. As the total number of Units available for issuance under the rights offering was 13,547,056 Units only, 5,572,074 additional Units were issued pursuant to the additional subscription privilege. Insiders of the Company subscribed for 630,251 Units of the 7,974,982 Units distributed under the basic subscription privilege. No Units were subscribed for by insiders of the Company under the additional subscription privilege.
On the Closing Date, RMO paid Mackie Research Capital Corporation (“MRCC”) $9,187.50 plus taxes and disbursements in payment for the balance of its corporate financing fee and a soliciting dealer’s fee representing 8% of aggregate gross proceeds raised under the rights offering excluding proceeds raised as a result of the exercise of rights by insiders of the Company and proceeds raised as a result of Units purchased by MRCC. MRCC was also issued an option (the “MRCC Option”) entitling it to acquire 2,041,680 common shares of the Company at an exercise price of $0.135 per common share for a period of 24 months following the Closing Date.
After the issue of Units under the rights offering, the Company has approximately 40,979,931 common shares issued and outstanding, excluding any common shares which may be issued to MRCC pursuant to the MRCC Option.
For further information, contact Mr. Clive Shallow, Shareholder Communications, at 604-922-2030, or visit the Company’s website at www.rmroyalty.com.
RAINY MOUNTAIN ROYALTY CORP.
“Douglas L. Mason”
Douglas L. Mason, Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
This news release includes certain statements that may be deemed “forward-looking statements” within the meaning of applicable securities legislation. All statements, other than statements of historical facts, that address such matters as future exploration, drilling, exploration activities, potential mineralization and resources and events or developments that the Company expects, are forward looking statements and, as such, are subject to risks, uncertainties and other factors of which are beyond the reasonable control of the Company. Such statements are not guarantees of future performance and actual results or developments may differ materially from those expressed in, or implied by, this forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking statements include such matters as market prices, exploitation and exploration results, continued availability of capital and financing, and general economic, market or business conditions. Any forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.