News about the raising of fresh capital can always lead to considerable attention for a company, and in light of the announcement from Adyton Resources Corporation (OTC:ADYRF) on April 19, it is likely that the company would be in focus today. This past Friday, the company announced that it had been successful in the closing of a non-brokered private placement by way of which it issued 50,000,000 common shares in Adyton Resources Corporation for the price of C$0.03 to generate total gross proceeds to the tune of C$1,500,000.
In the news release, the company revealed that it aimed to use the proceeds from the private placement for exploration activities, tenement holding costs, and general corporate purposes. It was noted that there was an expectation that the majority of the proceeds would be used for general corporate purposes. However, none of the fresh capital would be deployed for making payments to non-arm’s length parties except for regular compensation to employees, directors, officers, and consultants, which would be part of general corporate expenses.
The company also revealed that it had also paid out finder’s fees to the tune of 4,000,000 shares and 4,000,000 common share purchase warrants to an arm’s length finder. A finder warrant would entitle the holder to pick up one share in the company for the exercise price of C$0.05 up until April 20, 2026.
It should be noted that all the securities that had been issued as part of the financing would be subject to a hold period that would expire on August 20, 2024, as per the provisions of the relevant Canadian securities laws. Some of the directors, officers, and assorted insiders of Adyton Resources Corporation had picked up a total of 6250000 shares in the financing round. It remains to be seen if the development leads to any action in the stock this week.
