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Highlights:
- Fox River to raise $2.88 million through a non-brokered private placement.
- Strategic Investor to acquire 9.9% of Fox River’s issued common shares.
- Proceeds to support the Martison Phosphate Project and corporate development.
Fox River Resources (CSE: FOX) is pleased to announce a non-brokered private placement (the “Offering”) with a strategic investor (the “Strategic Investor”), which is expected to result in the investor holding 9.9% of the Company’s outstanding common shares on a non-diluted basis after the Offering. The Strategic Investor will subscribe for 7,200,000 common shares (the “Shares”) at a price of $0.40 per Share, for gross proceeds of $2,880,000.
This financing is a key step in supporting Fox River’s ongoing development efforts, particularly in advancing its Martison Phosphate Project in Ontario. The proceeds from the Offering will primarily be used for the continued exploration and development of this important project, as well as for general working capital and corporate purposes.
Investor Rights Agreement to Provide Strategic Oversight
In conjunction with the Offering, Fox River and the Strategic Investor will enter into an investor rights agreement, which outlines a range of rights for the Strategic Investor, contingent upon maintaining specific ownership thresholds in the Company. These rights include:
- The right to participate in future equity financings, ensuring the Strategic Investor can maintain its ownership percentage.
- Top-up rights in the event of dilutive issuances, offering protection against the dilution of their investment.
- The right to nominate one individual to the Company’s Board of Directors (although the Strategic Investor has no current intention of exercising this right).
The investor rights agreement is a significant step in ensuring that the Strategic Investor has an active role in the Company’s growth, with a clear path for continued involvement in future financing activities.
Timing and Conditions of the Offering
The Offering is expected to close on or about November 27, 2024, pending the satisfaction of certain conditions, including the execution of definitive agreements and the investor rights agreement with the Strategic Investor. The Shares issued to the Strategic Investor will be subject to a hold period of four months and one day from the closing date, in accordance with applicable securities laws.
This investment underscores the growing confidence in Fox River’s potential, as the Strategic Investor’s participation reflects a belief in the future success of the Martison Phosphate Project, one of the Company’s key assets. The project has the potential to unlock significant value, and the financing will help ensure that Fox River has the resources necessary to move it forward.
