As part of the Offering, the Company and the Corporate Investor anticipate entering into an investor rights and shareholder agreement (the "Agreement") pursuant to a standard investment license application in the area of origin of the Corporate Investor. The Agreement is expected to provide the Corporate Investor with the right to participate in future financings of the Company on a pro rata basis, as well as certain board observer rights, contingent on the Corporate Investor maintaining ownership of at least 10% of the outstanding shares of the Company.
Mr. Mansoor Jan, CEO of MAX Power, commented: "This strategic investment represents far more than capital, it's also a strong validation of MAX Power's vision and provides long-term alignment with a partner that recognizes the potential of the Natural Hydrogen sector and our 1.3 million acres currently under permit in Saskatchewan. We are now rapidly proceeding toward the start of Canada's first-ever deep drill program targeting Natural Hydrogen, set to begin this upcoming quarter with more details soon. Our goal is nothing less than the world's first commercial Natural Hydrogen discovery."
Each Unit of the Offering to the Corporate Investor will comprise one common share in the capital of the Company (a "Share") and one-half of a Share purchase warrant (a "Warrant"). Each full Warrant will entitle the Corporate Investor to acquire one additional Share at a price of $0.45 for 24 months from closing of the Offering, subject to an accelerated expiry provision.
All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. Under the acceleration provision, if the closing price of the Company's common shares is $0.75 or higher for 10 consecutive trading days, the ...
