Cypress Development Announces C$8.5 Million Bought Deal Offering
February 08 2021 - 3:35PM
Cypress Development Corp. (
TSXV:
CYP) (
OTCQB: CYDVF) (
Frankfurt:
C1Z1) ("
Cypress" or the
"
Company"), is pleased to announce that it has
entered into an agreement with PI Financial Corp. as the sole
underwriter and bookrunner (the "
Underwriter")
pursuant to which the Underwriter has agreed to purchase, on a
bought deal basis pursuant to a short form prospectus, 6,800,000
units (the "
Units") of the Company at a price of
C$1.25 per Unit (the "
Offering Price") for gross
proceeds of C$8,500,000 (the "
Offering"). Each
Unit shall consist of one common share of the Company and one
common share purchase warrant (each, a "Warrant"). Each Warrant
shall be exercisable for one common share of the Company for a
period of 36 months from the Closing Date (as herein defined) at an
exercise price of C$1.75.
In addition, the Company has granted the
Underwriter an option (the "Over-Allotment Option"), exercisable in
whole or in part, for a period of 30 days following the Closing
Date, to purchase up to an additional 15% of the Units sold
pursuant to the Offering, on the same terms as the Offering, to
cover over-allotments and for market stabilization purposes.
The net proceeds from the Offering are expected
to be used by the Company to fund ongoing work on the Company's
Clayton Valley Lithium Project in Nevada and for general working
capital purposes.
Closing of the Offering is expected to take
place on or about March 3, 2021, and is subject to certain
conditions including, but not limited to the receipt of all
applicable regulatory approvals including approval of the TSX
Venture Exchange.
The Units to be issued under the Offering will
be offered by way of a short form prospectus to be filed in each of
the provinces of Canada, except Québec. The Units may also be
offered in the United States to Qualified Institutional Buyers
pursuant to exemptions from the registration requirements of the
United States Securities Act of 1933 as amended, (the "U.S.
Securities Act"), in a manner that does not require the Offering to
be registered in the United States, and in certain other
jurisdictions in accordance with applicable securities laws.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy nor shall there be any
sale of any of the securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful. The securities have
not been and will not be registered under the U.S. Securities Act,
or the securities laws of any state of the United States and may
not be offered or sold within the United States (as defined in
Regulation S under the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws or
pursuant to an exemption from such registration requirements.
About Cypress Development
Corp.
Cypress Development Corp. is a publicly traded
exploration company focused on developing the Company's 100%-owned
Clayton Valley Lithium Project in Nevada. Exploration and
development by Cypress discovered a world-class resource of
lithium-bearing claystone adjacent to the Albemarle Silver Peak
mine, North America's only lithium brine operation. The size of the
resource makes the Clayton Valley Project a premier source that has
the potential to impact the supply of lithium for the fast-growing
global energy storage battery market.
For Additional Information Please
Contact:
Dr. William Willoughby |
Director & Chief Executive Officer |
Suite 1610 - 777 Dunsmuir Street |
Vancouver, BC, Canada, V7Y 1K4 |
Telephone: (604) 639-3851 |
Toll-Free: (800) 567-8181 |
Email:
info@cypressdevelopmentcorp.com |
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