Volatus Closes Financing
VOLATUS CAPITAL CORP.
NEWS RELEASE
VOLATUS CLOSES FINANCING
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
May 20, 2020 CSE Trading Symbol: VC
Volatus Capital Corp. (“Volatus” or the “Company”) announces that, further to its news release of May 13, 2020, it has closed the first tranche of a non-brokered private placement offering (the “Offering”) and issued 9,900,000 common shares at $0.075 per share for gross proceeds of $749,250 (the “First Tranche”).
The securities issued in the First Tranche are subject to staggered hold periods expiring as to 2,497,500 common shares (25%) on each of the following dates from issuance: (i) four months and one day (September 21, 2020); (ii) twelve months (May 20, 2021); (ii) eighteen months (November 20, 2021); and
(iv) twenty-four months (May 20, 2022).
No finders fees were paid in the First Tranche.
The proceeds raised from this Offering will be used by the Company to conduct further exploration work on its properties in British Columbia, project acquisitions, and for general corporate purposes.
Any additional tranches of the Offering are expected to close on or before May 31, 2020.
Crest Resources Inc. (“Crest”) participated for a total of 2,000,000 common shares in the First Tranche indirectly through its wholly owned subsidiary, Crest Project Development Corp. Crest is a related party by reason that it currently beneficially owns and controls 29.85% of the Company and Michael Collins, who is the President, CEO and a director of Crest, is also the President, CEO and a director of the Company. Additional related parties who participated in the First Tranche are as follows: Mr. Collins for a total of 880,000 common shares; Jason Cubitt, a director of the Company, for a total of 200,000 common shares; Rachel Chae, the CFO of the Company, for a total of 100,000 common shares; and Arielle Morgan, the Corporate Secretary of the Company, for a total of 160,000 common shares. This participation constitutes a “related party transaction” for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying upon exemptions from the requirement to obtain a formal valuation and seek minority shareholder approval for the Offering on the basis that the fair market value of the participation by related parties in the Offering is less than 25% of the Company’s current market capitalization.
About Volatus Capital Corp.
The Company is focused on exploration and development of resources in gold and Battery Metals that have strong demand profiles in the growing green economy.
We seek Safe Harbor.
ON BEHALF OF THE BOARD
“Michael Collins”
Michael Collins, President and CEO For additional information, contact Volatus at 604-681-3170
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
Forward-Looking Statements This news release contains certain forward-looking statements, which relate to future events or future performance (including, but not limited to, the overall size of the Offering, the proposed use of proceeds and the expected closing of any further tranches thereof) and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to, market conditions, availability of financing, actual results of the Company’s exploration and other activities, environmental risks, future metal prices, operating risks, accidents, labor issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry. All the forwardlooking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.
THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES AND THE COMPANY IS NOT SOLICITING AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.