Press Release (Non-Brokered Private Placement of Units)

Summary

This precedent is a press release to announce a non-brokered private placement of units. The nature of a private placement offering allows for more complex securities than a public offering may readily allow. This precedent addresses a relatively straightforward unit offering of one common share and one warrant which can be used to subscribe for an additional common share of the issuing company. Units could be comprised of securities that would qualify as flow-through shares for the purposes of the Income Tax Act, R.S.C. 1985 (5th Supp.), c. 1, as well as debentures convertible in equity of the issuer and any number of other combinations of securities. It includes practical guidance and drafting notes. A non-brokered private placement means that there is no underwriting or agency agreement and no commitment for compensation for placement of securities of an issuer. A non-brokered private placement of units may involve a finder – who may or may not receive a fee for their services. ...