CoTec Holdings Corp Completes Initial Stage of Major Private Placement

CoTec Holdings Corp. announced the initial closing of their significant, non-brokered private placement, which could raise up to $3 million by selling 6 million units at $0.50 each. This initial round has successfully raised approximately $2.07 million through the issuance of over 4.14 million units. These funds are earmarked for progressing key projects including the Feasibility Study for HyProMag USA and the Preliminary Economic Assessment of the Lac Jeannine Project, along with supporting general corporate expenses.

The majority buyer in this initial closing was Kings Chapel International Limited, acquiring 4 million units. This purchase strengthens their role as a principal insider and control person of the corporation. The transaction involved related parties, necessitating special regulatory disclosures and exemptions as per TSX Venture Exchange rules and MI 61-101 regulations. Despite the inherent complexity of transactions with insiders, the private placement adheres to all regulatory exemptions concerning valuation and minority shareholder rights.

The securities procured during this private placement are bound by a statutory hold period of four months plus one day, following Canadian securities laws.