Red Moon Arranges Private Placement
St. John’s, Newfoundland and Labrador, June 7, 2021 – Red Moon Resources Inc. (the “Company” or “Red Moon” – TSXV: RMK) announces that investors are subscribing for up to 1,282,051 units of the Company in a non-brokered private placement at 78 cents per unit for gross proceeds to the Company of $1 million.
Each unit in the financing consists of one common share and one common share purchase warrant, with each warrant to be exercisable at a price of $1.05 for a period of two years following the close of the offering (subject to an acceleration clause, see below).
Mr. Patrick Laracy, Red Moon CEO, commented: “We are accommodating demand from certain strategic investors while maintaining our commitment to limited share dilution given our already strong financial position and other favorable metrics.”
In the event that the closing price of the company’s shares on the TSX Venture Exchange is $1.50 or greater per share during any 10 consecutive trading day period at any time subsequent to four months and one day after the closing date, all warrants in this offering will expire at 4:00 pm Newfoundland time on the 30th day after the date on which the company provides notice of such accelerated expiry to the holders of the warrants.
The proceeds of the offering will be used by the company for general working capital purposes. The securities issued will have a four-month hold period as per applicable regulations. The financing is subject to TSX Venture Exchange approval.
About Red Moon Resources
Red Moon Resources is an emerging commodities leader in Atlantic Canada, focused on Newfoundland and Labrador, with 100-per-cent ownership of the Great Atlantic salt deposit in addition to a producing gypsum mine, an early-stage nepheline discovery, and strategic ground covering the Fischell’s Brook salt dome and adjacent claims.
We seek Safe Harbor.
For information, please contact:
Patrick J. Laracy, CEO
MarketSmart Communications Inc.
Not for release in the United States or to U.S. newswire services
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors beyond the Company’s control may affect the actual results achieved. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except by law, the Company undertakes no obligation to publicly update or revise forward-looking information.