/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
NEWSWIRE SERVICES/
TORONTO, Jan. 22, 2021 /CNW/ - First Cobalt Corp. (TSXV:
FCC) (OTCQX: FTSSF) (the "Company") is pleased to announce that it
has closed its previously announced bought deal offering (the
"Offering") of units of the Company (the "Units"). The Offering was
conducted by a syndicate of underwriters led by Eight Capital,
together with CIBC World Markets Inc., Canaccord Genuity Corp., Red
Cloud Securities Inc. and Mackie Research Capital Corporation
(collectively, the "Underwriters") and consisted of the sale of
31,533,000 Units (including the full exercise of the over-allotment
option by the Underwriters) at a price of C$0.31 per Unit (the "Offering Price") for
aggregate gross proceeds of $9,775,230.
Each Unit consists of one common share of the Company (each, a
"Unit Share") and one-half of one common share purchase warrant
(each whole common share purchase warrant, a "Warrant"). Each
Warrant is exercisable into one common share of the Company at an
exercise price of $0.50 per common
share for a period of 24 months from the closing of the Offering
(the "Warrant Shares" or together with the Unit Shares,
"Shares").
The Company intends to use the net proceeds of the Offering for
the advancement of the First Cobalt Refinery and for general
corporate purposes.
The Underwriters received a cash commission equal to 6% of the
gross proceeds of the Offering and 1,891,980 compensation warrants
("Compensation Warrants"), each Compensation Warrant exercisable to
acquire one common share of the Company at the Offering Price, for
a period of 24 months from the closing of the Offering.
The securities issued pursuant to the Offering were qualified
for distribution pursuant to a prospectus supplement dated
January 18, 2021 (the "Prospectus
Supplement") to First Cobalt's short form base shelf prospectus
dated November 26, 2020 (the "Base
Shelf Prospectus"), filed in each of the provinces of Canada, except Quebec, and offered and sold outside of
Canada to qualified investors in
accordance with applicable law. The Prospectus Supplement, the Base
Shelf Prospectus and the documents incorporated by reference
therein, are available on the Company's issuer profile on SEDAR at
www.sedar.com.
This press release does not constitute an offer to sell, or a
solicitation of an offer to buy, any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer or
sale would be unlawful. The Units, Shares and Warrants, as well as
the Shares issuable upon exercise of the Warrants, have not been
and will not be registered under the U.S. Securities Act, or any
securities or "blue sky" laws of any of the states of the United States. Accordingly, such
securities may not be offered or sold within the United States except in accordance with an
exemption from the registration requirements of the U.S. Securities
Act and applicable state securities laws.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "occur" or "be
achieved". Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for First Cobalt, filed on SEDAR at
www.sedar.com. Although First Cobalt believes that the information
and assumptions used in preparing the forward-looking statements
are reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, First Cobalt disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
SOURCE First Cobalt Corp.