Mr. Ran Narayanasamy, MAX Power CEO, commented: "This is the largest raise in MAX Power history, occurring in the immediate aftermath of the Lawson Discovery as Canada's first confirmed Natural Hydrogen subsurface system on the 475-km-long Genesis Trend in Saskatchewan. We thank Eric Sprott for his continued great support of a project that we believe has nation-building scope through repeatability and scalability across the country's largest permitted land package for Natural Hydrogen exploration and development."
Pursuant to the terms of the Offering, a total of 15,805,624 Units were sold at a price of C$1.30 per Unit (the "Issue Price") for aggregate gross proceeds of $20,547,311.20. Each Unit consists of one common share of the Company ("Common Share") and one-half of one Common Share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share at an exercise price of C$1.80 per share at any time up to 24 months from the closing of the Offering.
The net proceeds of the Offering will be used for: 1) An ongoing program of analytical testing, resource modeling, and resource estimation of the Lawson Natural Hydrogen Discovery on the Genesis Trend near Central Butte, Saskatchewan, followed by a confirmatory well to validate potential commerciality; 2) Further acquisition of 2D and 3D seismic data covering various targets throughout MAX Power's Saskatchewan land package; 3) Drilling of additional wells; and 4) General corporate purposes including administrative and marketing.
In connection with the Offering, the Company paid a cash commission equal to 6% of the gross proceeds of the Offering to the Agent and selling group members and issued 948,337 non-transferable broker warrants (each, a "Broker Warrant"), Each Broker Warrant is exercisable to acquire one Common Share at the Issue Price until March 20, 2028.
Eric Sprott through 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired 3,538,461 Units for total consideration of $4,599,999.30.
Certain officers, directors and insiders of the Company have acquired an aggregate of 3,620,010 Units in connection with the Offering. Their participation in the Offering therefore constitutes a "related-party transaction" within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) ...
