HPX majority-owned subsidiary Kaizen Discovery Inc. (TSXV: KZD) has announced that it has successfully closed the first tranche of C$1.0 million of the planned C$2.5 million non-brokered private placement financing that the company announced on July 8, 2019.
Kaizen’s majority shareholder, HPX TechCo Inc. (HPX), subscribed for 20 million units at a price of C$0.05 per unit (each unit consisting of one common share and one common share purchase warrant of the company) for an investment of C$1.0 million of the non-brokered private placement (Lead Order). Each warrant will entitle the holder to purchase one common share of the company at C$0.12 per share for a period of 24 months following the closing date of the private placement.
As of closing of the Lead Order, Kaizen will have a total of 296,766,636 shares issued and outstanding. HPX’s ownership of Kaizen will change from its current level of 66.8% to 69.1%. Assuming full take up of the private placement offering, Kaizen will have a total of 326,766,636 shares issued and outstanding and HPX’s ownership will be 62.7%.
The proceeds from the private placement will be used to fund the planned exploration drilling program at the Pinaya Project, to identify and review new project opportunities, and for general administrative expenses.
For more information please see Kaizen’s news release.