Fuse Cobalt Accelerates Warrant Expiry date of Amended Warrants
Vancouver, June 15, 2020 - Fuse Cobalt Inc. ("the Company" or "Fuse") (TSXV:FUSE) (OTC:FUSEF) (FRA:43W2) announces that it is accelerating the expiry date of all of the outstanding common share purchase warrants (the "Warrants") of the Company issued by Fuse in connection with a non-brokered private placement that closed on February 4, 2019. Pursuant to the Warrant amendment as announced in April 30, 2020 and subsequently approved by the TSX Venture Exchange, the Warrants, as amended, and as required by Exchange policies, include an accelerated expiry provision such that the exercise period of each of the Warrants will be reduced to 30 days if for any 10 consecutive trading days during the unexpired term of the such Warrants, the closing price of the common shares exceeds the amended exercise price by 25% or more ($0.1125).
The Company confirms that as of the close of market, today June 15, 2020, the acceleration trigger has occurred. Accordingly, the expiry date of the Warrants are accelerated from February 4, 2024 to July 15, 2020. In accordance with the terms of the Warrants, this news release constitutes Notice to Warrant holders of the Acceleration Trigger. All unexercised Warrants will be cancelled after 5:pm (Pacific time) on July 15, 2020.
As of June 15, 2020, 4,028,333 amended Warrants remain outstanding. Each whole Warrant entitles the holder thereof to purchase one common share at $0.09 per share. If all outstanding amended Warrants are exercised gross proceeds to the Company will total $362,550.
Subsequently, on June 16, 2020 at the market open, Fuse's shares will trade on a 2:1 forward split basis, whereby all outstanding shares, warrants and options will be included in the 2:1 split.
The above amended Warrants will then total 8,056,666 Warrants with an exercise price of $0.045 per share expiring on July 15, 2020.
Certain insiders of the Company are holders of the Warrants, which is considered a related party transaction, as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") and Exchange Policy 5.9 Protection of Minority Security Holders in Special Transactions. The Company relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(a), respectively, of MI 61-101 in respect of such insider participation. Pursuant to the policies of the Exchange, no more than 10% of the aggregate number of Warrants held by these insiders were amended.
About Fuse Cobalt Inc. https://fusecobalt.com/
Fuse Cobalt Inc. is a Canadian based exploration company that trades under the symbol FUSE on the TSX Venture Exchange. The Company's focus is on exploration for high value metals required for the manufacturing of batteries.
Ontario Cobalt Properties:
Fuse owns a 100% interest its Glencore Bucke Property, situated in Bucke Township, 6 km east-northeast of Cobalt, Ontario, subject to a back-in provision, production royalty and off-take agreement. The Glencore Bucke Property consists of 16.2 hectares and sits along the west boundary of Fuse's Teledyne Cobalt Project. The Company also owns a 100% interest, subject to a royalty, in the Teledyne Project located near Cobalt, Ontario. The Teledyne Property adjoins the south and west boundaries of claims that hosted the Agaunico Mine.
On Behalf of the Board of Directors
"Robert Setter"
Robert Setter, President &CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward-looking. Forward-looking statements are not guarantees of future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward-looking statements.
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