Gold Reserve Inc. Closes US$15.0M Private Placement
07 Juin 2024 - 8:38PM
Business Wire
Gold Reserve Inc. (TSX.V: GRZ) (OTCQX: GDRZF) (“Gold
Reserve” or the “Company”) is pleased to announce the
closing of its previously announced best efforts private placement
of 4,285,715 Class A common shares of the Company (the “Common
Shares”) at a price of US$3.50 per Common Share for gross
proceeds of approximately US$15,000,000.00 (the “Offering”)
with Cantor Fitzgerald Canada Corporation (“CFCC”) as sole
agent and bookrunner. Following the Offering, there are a total of
103,954,426 Common Shares issued and outstanding.
The Company continues to evaluate and consider engaging in a
potential transaction (the “Potential Transaction”) in
relation to the sale of the common shares of PDV Holdings, Inc.
(“PDVH”), the indirect parent company of CITGO Petroleum
Corp (the “Sale Process”). The Potential Transaction may
include the Company submitting a bid (a “Potential Bid”),
either solely or jointly with certain undetermined parties,
pursuant to the sales and bidding procedures managed by the Special
Master of the U.S. District Court for the District of Delaware (the
“Bidding Procedures”).
In connection with the Offering, the Company has paid CFCC a
cash commission totalling approximately US$400,000. The net
proceeds from the Offering will be used to fund certain expenses in
connection with the Potential Transaction, including a potential
cash deposit required for a Potential Bid submitted pursuant to the
Bidding Procedures; however, there can be no assurance that a
Potential Bid will be submitted or that the Potential Transaction
will be consummated. In the event that (i) a Potential Bid is not
submitted, or (ii) a Potential Bid is submitted but the Potential
Transaction is not consummated, the net proceeds of the Offering
may also be used for working capital and general corporate
purposes.
Any Common Shares sold to investors outside of Canada were sold
pursuant to OSC Rule 72-503 and subject to compliance with
applicable securities laws, will be free from resale restrictions
under applicable Canadian securities laws, provided that the trade
is not a “control distribution” (as defined in National Instrument
45-102 – Resale of Securities).
The Offering remains subject to the final acceptance of the
TSXV.
ON BEHALF OF THE BOARD OF DIRECTORS
Paul Rivett Executive Vice-Chairman
Cautionary Statement Regarding Forward-Looking
Statements
This release contains “forward-looking statements” within the
meaning of applicable U.S. federal securities laws and
“forward-looking information” within the meaning of applicable
Canadian provincial and territorial securities laws and state Gold
Reserve’s and its management’s intentions, hopes, beliefs,
expectations or predictions for the future. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management at this
time, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. They are frequently
characterized by words such as “anticipates”, “plan”, “continue”,
“expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”,
“may”, “will”, “potential”, “proposed”, “positioned” and other
similar words, or statements that certain events or conditions
“may” or “will” occur. Forward-looking statements contained in this
press release include, but are not limited to, statements relating
to the Offering and the Potential Transaction.
We caution that such forward-looking statements involve known
and unknown risks, uncertainties and other risks that may cause the
actual events, outcomes or results of Gold Reserve to be materially
different from our estimated outcomes, results, performance, or
achievements expressed or implied by those forward-looking
statements, including but not limited to: failure to obtain any
necessary regulatory approvals in connection with the Offering; the
failure of the Company to negotiate and/or submit a Potential
Transaction, including as a result of failing to obtain sufficient
equity and/or debt financing to fund the expenses in connection
with any Potential Transaction; that the proceeds of any
equity/debt financing are used for purposes other than expenses
associated with the making of any Potential Transaction; that the
Potential Transaction may not close due to the Sale Process not
being completed, including as a result of the United States Office
of Foreign Asset Control not granting an authorization in
connection with any potential sale of PDVH shares and/or whether it
changes its decision or guidance regarding the Sale Process;
failure of the Company or any other party to obtain any required
shareholders and/or regulatory approvals (including approvals of
the TSX Venture Exchange) for, or satisfy other conditions to
effect, any transaction related to the Potential Transaction; that
the Company forfeit any cash amount deposit made due to failing to
complete the Potential Transaction or otherwise; that the making of
the Potential Transaction or any transaction resulting therefrom
may involve unexpected costs, liabilities or delays; that, prior to
or as a result of the completion of any transaction contemplated by
a Potential Transaction, the business of the Company may experience
significant disruptions due to transaction related uncertainty,
industry conditions or other factor; the ability to enforce the
writ of attachment granted to the Company; the timing set for
various reports and/or other matters with respect to the Sale
Process may not be met; the ability of the Company to otherwise
participate in the Sale Process (and related costs associated
therewith; the amount, if any, of proceeds associated with the Sale
Process; the competing claims of certain creditors, the “Other
Creditors” (as detailed in the applicable court documents filed
with the Delaware Court) of Venezuela and the Company, including
any interest on such creditors’ judgements and any priority
afforded thereto; uncertainties with respect to possible
settlements between Venezuela and other creditors and the impact of
any such settlements on the amount of funds that may be available
under the Sale Process; and the proceeds from the Sale Process may
not be sufficient to satisfy the amounts outstanding under the
Company’s September 2014 arbitral award and/or corresponding
November 15, 2015 U.S. judgement in full and the ramifications of
bankruptcy with respect to the Sale Process and/or the Company’s
claims, including as a result of the priority of other claims. This
list is not exhaustive of the factors that may affect any of the
Company’s forward-looking statements. For a more detailed
discussion of the risk factors affecting the Company’s business,
see the Company’s Annual Information Form on Form 40-F and
Management’s Discussion & Analysis for the year ended December
31, 2023 and other reports that have been filed on SEDAR+ and are
available under the Company’s profile at www.sedarplus.ca and which
have been filed on EDGAR and are available under the Company’s
profile at www.sec.gov/edgar, as well as subsequent filings on such
platforms.
Investors are cautioned not to put undue reliance on
forward-looking statements. All subsequent written and oral
forward-looking statements attributable to Gold Reserve or persons
acting on its behalf are expressly qualified in their entirety by
this notice. Gold Reserve disclaims any intent or obligation to
update publicly or otherwise revise any forward-looking statements
or the foregoing list of assumptions or factors, whether as a
result of new information, future events or otherwise, subject to
its disclosure obligations under applicable rules promulgated by
the Securities and Exchange Commission and applicable Canadian
provincial and territorial securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES
OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
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Gold Reserve Inc. Jean Charles Potvin 999 W. Riverside Ave.,
Suite 401 Spokane, WA 99201 USA Tel: (509) 623-1500 Fax: (509)
623-1634
Gold Reserve (TSXV:GRZ)
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