Nordic has entered into an agreement providing for an Equity Line Facility ("ELF") with Dutchess Opportunity Cayman Fund. Under the terms of the ELF, Dutchess has conditionally committed to provide up to $10 million of capital during a 36-month period, at Nordic's discretion, through the issue of common shares.
The ELF remains subject to certain conditions precedent, including obtaining an exemptive relief order from applicable securities regulatory authorities approval of the TSX Venture Exchange and the filing of an Annual Information Form, a preliminary short form base shelf prospectus and a prospectus supplement in certain jurisdictions in Canada, which will be subject to the required corporate and regulatory approvals.
"This new equity line facility with a well-established investor such as Dutchess would give us both flexible and inexpensive access to capital to support our growth initiatives," Mr. Benson stated. "By demonstrating access to capital, and combined with our growing production levels, and the strength of our exploration targets in Saskatchewan and Alberta, we are sending a clear and positive message to our shareholders that we are striving to increase our resources with the objective of new and additional production."
Subject to receipt of all necessary approvals and filing, Nordic can draw on Dutchess' commitment by sending draw down notices based on the company's requirements. Each drawdown will be priced based on the then-current stock price in accordance with an agreed-upon formula. Nordic will control the timing and amount of any share sales to Dutchess. The Company is restricted from issuing shares under a draw down to the extent such shares would result in Dutchess and its affiliates owning more than 10% of the issued and outstanding shares of the Company.
The agreement can be terminated at any time by the Company without the payment of any additional fees. No commissions will be paid by Nordic as a result of the signing of the ELF.
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