Jade Leader Announces Financing

Rhea-AI Summary

Jade Leader Corp. (TSX.V:JADE) has announced a non-brokered private placement of up to 4 million Units at $0.05 per Unit, aiming to raise up to CDN$200,000. Each Unit includes one common share and a half common share purchase warrant. Full warrants allow purchasing an additional share at $0.10 for three years, with an acceleration clause if the stock price exceeds $0.25 for ten consecutive trading days. The offering targets accredited investors with a four-month hold period. Proceeds will fund working capital, corporate purposes, jade exploration, and marketing. Insiders may participate, constituting a related party transaction under TSX Venture Exchange Policy 5.9 and MI 61-101, with exemptions from formal valuation and minority shareholder approval requirements.

Positive

• Potential to raise up to CDN$200,000 in additional capital
• Warrants provide potential for future funding at $0.10 per share
• Acceleration clause in warrants could lead to earlier exercise if stock price performs well
• Funds allocated for jade exploration and marketing activities

Negative

• Potential dilution for existing shareholders
• Offering price of $0.05 per Unit may indicate low market valuation
• Related party transaction with insider participation may raise governance concerns

CALGARY, AB / ACCESSWIRE / July 18, 2024 / Jade Leader Corp. (TSX.V:JADE) ("Jade Leader" or "the Company") is pleased to announce a non-brokered private placement of up to 4 million Units, at a price of $0.05 per Unit, for gross proceeds of up to CDN$200,000.

Each Unit consists of one common share and a half common share purchase warrant. Each full common share purchase warrant (a "Warrant") will entitle the holder to purchase an additional common share at a price of $0.10 per share for a period of three years following closing. The Warrants will also include an acceleration clause, such that the term of the Warrants will be reduced to 30 days (the "Reduced Term") in the event the closing price of the Common Shares on the TSX Venture Exchange exceeds $0.25 or more for ten consecutive trading dates (the "Premium Trading Days"). The Reduced Term would commence on the third business day after the tenth Premium Trading Day.

The Units are to be offered on a non-brokered basis by way of private placement to accredited investors. All securities issued under the offering will be subject to a hold period of four months plus one day from the date of closing. A finder's fee of 5% may be paid to eligible agents upon closing. This financing is subject to TSX Venture approval.

Proceeds of the financing are to be used for working capital, general corporate purposes as well as additional Jade exploration and Jade marketing activities.

In connection with the Private Placement, insiders may purchase Units. The participation of those individuals constitutes a "related party transaction" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument MI 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") adopted in the Policy. The Company will rely on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the subject matter of the Private Placement will not exceed 25% of the market capitalization of the Company as calculated in accordance with MI 61-101.

About Jade and Jade Leader Corp.

Recent trade articles and mainstream publications suggest that the international Jade market is now larger than the better-known worldwide market for rough diamonds, without any participation in the space by publicly listed Companies prior to the formation of Jade Leader Corp.

Jade Leader, with a Board of Directors having over 120 years of combined experience as mineral exploration geologists with proven track records of discoveries, is led by JP. Jutras, B.Sc Hons geology, P.Geol., who is also an internationally recognized Jade carver with over 30 years of experience.

Jade Leader is leveraging this unique combination of mineral exploration expertise and Jade carving knowledge to advance a portfolio of 6 Jade exploration properties, all carrying nephrite Jade with various characteristics, in stable, mining-friendly jurisdictions in the USA.

On Behalf of the Board of Directors,

"Jean-Pierre Jutras"

Jean-Pierre Jutras, President/Director

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release.

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates" and similar expressions, are forward-looking information that represents management of Jade Leader's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Jade Leader. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Jade Leader's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Jade Leader's filings with the Canadian securities authorities. Accordingly, holders of Jade Leader shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. Jade Leader disclaims any responsibility to update these forward-looking statements.

SOURCE: Jade Leader Corp.

View the original press release on accesswire.com

FAQ

What is the price per Unit in Jade Leader Corp's (TSX.V:JADE) private placement?

Jade Leader Corp. is offering Units at a price of $0.05 per Unit in its non-brokered private placement.

How much is Jade Leader Corp. (TSX.V:JADE) aiming to raise through this financing?

Jade Leader Corp. is aiming to raise up to CDN$200,000 through this private placement.

What is the exercise price and term of the warrants in Jade Leader Corp's (TSX.V:JADE) offering?

The warrants have an exercise price of $0.10 per share and a term of three years following the closing of the offering.

What is the acceleration clause in Jade Leader Corp's (TSX.V:JADE) warrant terms?

The warrant term will be reduced to 30 days if Jade Leader's stock price exceeds $0.25 for ten consecutive trading days on the TSX Venture Exchange.

How will Jade Leader Corp. (TSX.V:JADE) use the proceeds from this financing?

Proceeds will be used for working capital, general corporate purposes, additional jade exploration, and jade marketing activities.