Abzu Gold Ltd. (TSXV:ABS) announced the closure of a strategic investment of 22,727,273 units priced at 11 cents per unit with Stonehouse Construction Pte. Ltd. and four of Stonehouse’s shareholders. Proceeds from the transaction totaled $2.5 million.
As quoted in the press release:
Each Unit is comprised of one common share (a “Share”) of the Company and one common share purchase warrant (a “Warrant”) of the Company. Each Warrant is exercisable into an additional Share for a period of 12 months from closing of the Investment at an exercise price of $0.125 per Share.
Pursuant to the terms of the definitive share purchase agreement between the Company and Stonehouse, provided the Strategic Investors hold 10% or more of the issued and outstanding Shares, Stonehouse will be entitled to appoint from time to time directors of the Company up to a maximum of 40% of the number of directors of the Company at any time.
Accordingly, in connection with the Investment, the Company has appointed Messrs. Eric Wardle and David Savage to the Company’s board of directors.