Sierra Madre Announces Proposed Private Placement and Share Consolidation
NEWS RELEASE
SIERRA MADRE ANNOUNCES PROPOSED PRIVATE PLACEMENT AND SHARE CONSOLIDATION
June 18, 2020
Sierra Madre Developments Inc. (the “Company”) (TSXV: SMG.H) announces that it proposes a share consolidation and a non-brokered private placement financing.
Share Consolidation
The directors have approved the consolidation of the Company’s 10,798,083 issued and outstanding common shares on the basis of one new share for every two outstanding shares. As a result of the share consolidation, the Company will have approximately 5,399,041 common shares outstanding. The share consolidation is subject to acceptance of the TSX Venture Exchange.
Private Placement
The directors have also approved a private placement to raise up to $1,000,000 through the distribution of post-consolidated units (each a “Unit”) at $0.06 per Unit. Each Unit will consist of one post-consolidated common share of the Company and one share purchase warrant exercisable at a price of $0.08 per postconsolidated share for a period of 12 months from the date of issue.
Funds will be used for payment of certain debts, and for working capital purposes. The Company may pay finder fees in connection with closing of the Private Placement.
ON BEHALF OF THE BOARD:
“Raymond Wladichuk”
Raymond Wladichuk, CEO Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to: the proposed Property acquisition, the consolidation of the Company’s shares, and the proposed private placement. There is no assurance the Company will be able to raise funds on the terms stated, or at all. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to uncertainties surrounding the mineral exploration industry and the COVID -19 pandemic. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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