Victory Metals Provides Update Regarding Significantly Oversubscribed Financing /THIS PRESS RELEASE IS NOT INTENDED FOR RELEASE OR DISSEMINATION IN THE
Victory Metals Provides Update Regarding
Significantly Oversubscribed Financing
/THIS PRESS RELEASE IS NOT INTENDED FOR RELEASE OR DISSEMINATION IN
THE
UNITED STATES
/
VANCOUVER, BC
,
Dec. 22, 2020
/CNW/ -
Victory Metals Inc.
(TSXV: VMX)
("Victory")
is
pleased to announce that, further to its news release dated
December 4, 2020
, and due to
significant demand, Victory has increased the size of its non-brokered private placement financing
(the "
Private Placement
") of subscription receipts of Victory ("
Subscription Receipts
") from
$8
million
to approximately
$17.5 million
. The Private Placement is expected to close in two tranches,
with the first tranche anticipated to close on
December 23, 2020
and the second tranche to close in
January 2021
. The Subscription Receipts will be issued at a price of
$0.55
per Subscription Receipt
(the "
Subscription Price
").
The Private Placement is being conducted in conjunction with the previously announced merger of
equals transaction (the "
Merger
") between Victory and Nevada King Mining Ltd. ("
Nevada King
")
pursuant to which Victory will acquire all the issued and outstanding shares of
Nevada King
for
common shares of Victory (the "
Victory Shares
"), with the shareholders of
Nevada King
to hold
50% of the issued and outstanding Victory Shares on completion of the Merger. In addition to
customary conditions to completion of the Merger, including shareholder, court and regulatory
approvals, a key business condition is the completion of an
$8 million
financing at an effective price
per Victory share of not less than
$0.50
.
Details Regarding The Subscription Receipts
The Subscription Receipts will be issued pursuant to a subscription receipt agreement to be entered
into between Victory and the subscription receipt agent (the "
Subscription Receipt Agreement
").
Pursuant to the Subscription Receipt Agreement, each Subscription Receipt will entitle the holder to
receive one post-Merger Victory Share immediately after closing of the Merger, subject to other
standard conditions, without further action on the part of the holder and without payment of
additional consideration. The proceeds of the Private Placement will be held in escrow pending the
completion of the Merger. If the Merger is not completed before
April 16, 2020
the Subscription
Receipts will be deemed to be cancelled and the holders of Subscription Receipts will receive a cash
amount equal to the aggregate Subscription Price of their Subscription Receipts and any interest
that was earned on the Subscription Price.
The Subscription Receipts to be issued under the Private Placement and the Victory Shares to be
issued in exchange for the Subscription Receipts upon the closing of the Transaction will be subject
to a statutory hold period expiring four months and one day from the closing date of the Private
Placement.
The proceeds of the Private Placement will be used to advance Victory's development and
exploration stage assets and for other general corporate purposes.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended,
and may not be offered or sold in
the United States
absent registration or an applicable exemption
from the registration requirements. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such
offer, solicitation or sale would be unlawful.
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 Statements Regarding Forward Looking Information
This news release contains certain "forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of applicable securities legislation. All
statements, other than statements of historical fact, included herein, without limitation, statements
relating the future operations and activities of Victory, are forward-looking statements. Forward-
looking statements are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or
statements that events, conditions, or results "will", "may", "could", or" should" occur or be achieved.
Forward-looking statements in this news release relate to, among other things, statements relating
the terms of the Private Placement, the terms of the Merger; and the completion of the Private
Placement and Merger. Actual future results may differ materially. There can be no assurance that
such statements will prove to be accurate, and actual results and future events could differ materially
from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions
and projections on the date the statements are made and are based upon a number of assumptions
and estimates that, while considered reasonable by the Victory, are inherently subject to significant
business, economic, competitive, political and social uncertainties and contingencies. Many factors,
both known and unknown, could cause actual results, performance or achievements to be materially
different from the results, performance or achievements that are or may be expressed or implied by
such forward-looking statements and the parties have made assumptions and estimates based on or
related to many of these factors. Such factors include, without limitation, the Victory's failure to
complete the Merger, the failure or Victory shareholders or
Nevada King
shareholders to approve
the Merger, the failure of the TSX Venture Exchange to approve the Merger and the Private
Placement and management's discretion to reallocate the use of proceeds. Readers should not
place undue reliance on the forward-looking statements and information contained in this news
release concerning these items. Victory does not assume any obligation to update the forward-
looking statements of beliefs, opinions, projections, or other factors, should they change, except as
required by applicable securities laws.
SOURCE
Victory Metals Inc
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