Nio-Metals Holdings LLC

June 30, 2011 17:31 ET

Nio-Metals Holdings Acquires Units of Niocan Inc.

NEW YORK, NEW YORK--(Marketwire - June 30, 2011) - On June 29, 2011, Nio-Metals Holdings LLC ("Nio-Metals") entered into a binding term sheet with Niocan Inc. ("Niocan") pursuant to which Nio-Metals has agreed to purchase by way of private placement in reliance on the accredited investor exemption a minimum of 2,000 units (each, a "Unit") and a maximum of 4,000 Units at an issue price of $1,000 per Unit, representing aggregate gross proceeds to the company of a minimum of $2 million and a maximum of $4 million. Each Unit comprises one $1,000 principal amount of secured debenture ("Debenture") and 370 transferable common share purchase warrants of Niocan (each, a "Warrant"). Each Debenture will mature one year from the closing of the private placement and will bear annual interest at a rate of 10%. The principal amount and interest may be payable in cash or common shares of Niocan ("Common Shares") at Niocan's sole option, with the number of shares to be determined based on a price of $1.45 per Common Share. Niocan will also have the right to redeem the Debentures prior to maturity at a cash redemption price of 105% of the principal amount. Each Warrant will entitle the holder thereof to purchase one additional Common Share at a price of $1.45 until 5:00 p.m. on the day that is two years from the date of the issuance of the Warrant. Nio-Metals will purchase at least 2,000 Units and Niocan may seek other purchasers for the additional 2,000 Units. Niocan may require Nio-Metals to purchase any remaining Units not acquired by other purchasers.

The Units are being acquired for investment purposes and Nio-Metals and/or one or more of its affiliates may, depending on market and other conditions, increase or decrease its beneficial ownership of Common Shares or other securities of Niocan whether in the open market, by privately negotiated agreement or otherwise.

Nio-Metals Holdings LLC is located at 535 Madison Avenue, 11th Floor, New York, NY 10022. A copy of the report relating to this acquisition can be obtained from Michael Williams 646-365-1600 or on Niocan's profile at

The filing of this report is not an admission that an entity named in the report owns or controls any described securities or is a joint actor with another named entity.

Contact Information

  • Nio-Metals Holdings LLC
    Michael Williams