Puma Exploration Inc. (OTC:PUMXF) Stock In Focus After Private Placement Offering

Following the major announcement from Puma Exploration Inc. (OTC:PUMXF) this past Friday, it would be interesting to see if the company’s stock gets any action today or not. On December 15, the company announced that it had been successful in closing a non-brokered private placement, which consisted of as many as 8,400,000 flow-through units. Puma offered the units for $0.125 each and raised gross proceeds to the tune of C$1,050,000.

Each flow-through unit was made up of one flow-through share in the capital of the company and half of a common share purchase warrant. A whole warrant would entitle the owner to pick up one common share in Puma for the price of $0.20 per share up until December 15, 2025.

However, it was also revealed that the warrants were subject to an acceleration clause, thanks to which it would be possible for Puma Exploration to issue a notice to the holders that the warrants would expire in 30 days from the date of the notice delivery. Puma could also issue an acceleration notice if the closing price of the stock for 30 consecutive trading days on the TSX Venture Exchange hit $0.45 or higher. The acceleration notice could be served by the company at any time after the end of the statutory hold period and prior to the expiry of the warrants.

The net proceeds from the private placement would be used by the company for the purpose of taking care of Canadian exploration expenses and mining expenditures of a flow-through nature, as defined under the Canadian Income Tax Act. Additionally, it was also announced that Puma Exploration would use the proceeds to advance the exploration of the Williams Brook Gold Project as well as its assets located in Northern New Brunswick. The company also paid a finder’s fee of $50963 in cash and 405540 finder warrants in connection with the private placement.