Cadan Announces Offer of Shares to Existing Shareholders and Private Placement
----
|| |
----
Vancouver, British Columbia / TNW-ACCESSWIRE / September 9, 2014 / Cadan Resources Corp. (TSXV: CXD) is pleased to announce that it intends to complete an offering of up to 32,000,000 common shares of the Company at a price of $0.025 per share for gross proceeds of $800,000 (the "Offering"). Subject to certain limitations discussed below, the Offering is open to all existing shareholders of the Company. Existing shareholders interested in participating in the Offering should contact Peter Main at info@cadanresources.com for additional information.
Only shareholders who, as of the share register of September 5, 2014, held common shares of the Company and continue to hold common shares at the time of closing may participate in the Offering. The aggregate subscription cost to an existing shareholder cannot exceed $15,000, unless certain conditions are met. Existing shareholders who are residents of the Provinces of Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Prince Edward Island, Quebec, Saskatchewan, Yukon, Northwest Territories and Nunavut may participate in the Offering and existing shareholders resident in countries other than Canada will need to meet local jurisdiction requirements to participate. Shareholders resident in Ontario and Newfoundland and Labrador are not permitted to participate in the Offering.
The Company also announces a non-brokered private placement of up to 8,000,000 common shares of the Company at a price of $0.025 per share for gross proceeds of $200,000 (the "Private Placement"). The Company may pay a finder's fee in connection with the Private Placement.
The Offering and Private Placement are subject to receipt of a waiver from the TSX Venture Exchange ("TSXV") which if granted would permit the Company to offer the shares at a price below the TSX-V's $0.05 minimum pricing requirement. Closing of the Offering and Private Placement are also subject to TSX-V acceptance.
The board is very keen on maintaining your support going forward particularly at a very interesting time for Cadan and more importantly signs of improvement in broader market. In the last 2 months Cadan has seen a marked increase in inbound interest from potential investors in Cadan, either at the strategic or corporate level. This has resulted in a number of ongoing discussions with investors focusing on providing long term solutions for the T'Boli Project.
At this stage it is too early to be definitive about current discussions, however Cadan expects to be able to provide shareholders with more detailed information over the next 2 months. In the interim it has been determined a short term offering to shareholders would assist in maintaining existing operating activities and enable Cadan to negotiate with potential parties from a position of strength.
The proceeds of the Offering and Private Placement will be used primarily to maintain and preserve the Company's interest in its exploration properties and for general working capital purposes. Assuming the entire Offering and Private Placement are completed, the detailed use of proceeds will be as follows:
Click Image To View Full Size
Although the Company intends to use the proceeds of the Offering and Private Placement as described above, the actual allocation of net proceeds may vary depending on market conditions or future operations of the Company.
If the aggregate subscriptions under the Offering exceed the proposed number of shares to be distributed, subscriptions will be accepted in whole or in part at the discretion of the Company.
On Behalf of the Board,
Peter Main
Interim President and CEO
PeterM@cadanresources.com
For further information visit our website at www.cadanresources.com; email us at info@cadanresources.com
Phone: 604-687-0760 Fax:604-608-5442
Neither 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.
Copyright (c) 2014 TheNewswire - All rights reserved.
