First Cobalt's shares jump on upsized private placement

The First Cobalt Refinery is located in Ontario, Canada. (Image courtesy of First Cobalt)

First Cobalt Corp. (TSX-V: FCC) announced Friday that it has increased its previously announced non-brokered private placement to accommodate demand. The offering has increased to 14.3 million units of the company at a price of C$0.14 per unit for gross proceeds of approximately C$2million. The company expects to close the offering on February 5, 2020.

Each Unit issued pursuant to the Offering will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common Share at a price of C$0.21 for a period of two years.

The warrants are subject to accelerated expiry if the closing price of the common shares of the company is equal to or greater than C$0.37 per share for a period of ten consecutive trading days, in which case the company will have the option, but not the obligation, to accelerate the expiry to 20 calendar days from the date of notice.

Closing is subject to receipt of regulatory approvals, including the approval of the TSX Venture Exchange.

Midday Friday, First Colbalt's shares were up nearly 7% on the TSX. The company has a $40.9 million market capitalization.