NevGold (NAU.V) is one of the first companies taking advantage of a recent change in the rules and regulations to raise cash as the company is planning to raise C$3M in a brokered financing using the new Listed Issuer Financing Exemption. This makes it easier for companies to raise cash as the main benefit is that there no longer is a 4 month hold period required. The shares that will be issued will be immediately free trading.
The minimum amount of C$3M will be raised by issuing units priced at C$0.42. Each unit will consist of one common share as well as half a warrant with each full warrant allowing the warrant holder to acquire an additional share of NevGold at C$0.60 for a period of two years.
Disclosure: The author has a long position in NevGold and is participating in the current financing. NevGold is a sponsor of the website. Please read our disclaimer.
