While many junior companies are struggling to raise money in today’s environment, there are a few bright lights on the TSX Venture exchange. YANGAROO announced today that it closed the first tranche of its brokered private placement for gross proceeds of $1.2 million. The raise was done at $0.30 with NO WARRANTS ATTACHED. It was noted that YOO could raise up to $2 million, but the company has decided to cap the amount at $1.6 million as this reduces dilution.
The remaining $400 thousand amount to reach the $1.6 million is going to be taken up by one investor. Today’s (June 12th) news release stated the company was giving the investor more time to participate and has scheduled the close of the second tranche on or before July 29, 2014.
Today’s news follows yesterday’s announcement that the company paid off 100% of its outstanding $2.3 million debenture debt. This is significant for YANGAROO as it will save the company approximately $77 thousand per quarter in interest expenses. Click here to view yesterday’s news of YANGAROO’s repayment and redemption of all debentures.
In speaking with YANGAROO management today, it was expressed that the company now has the money it requires to accelerate growth.
Please click here to view full press release.