Grizzly Discoveries Inc. (TSX.V-GZD) (OTCQX: GZDIF) announced March 17, 2011 that it has entered into an agreement with Dominick & Dominick Securities (the “Agent”) to sell up to $5 million in non-flow-through share units at a price of $0.50 per unit and up to $2.5 million in flow-through units at a price of $0.70 per FT unit for gross proceeds of $7.5 million.
Each non-FT unit will consist of one common share and one-half purchase warrant entitling the holder to acquire one additional common share at an exercise price of $0.75 per share. Each FT unit will consist of one common FT share and one-half purchase warrant at an exercise price of $0.95 per share.
The Agent will receive a cash commission on the sale of non-FT and FT units representing 7% of the gross proceeds in addition the Corporation will issue to the Agent purchase warrants entitling the Agent to purchase Common Shares equal to 10% of the aggregate number of non-FT units and FT units sold at an exercise price of $0.75.
The proceeds of the Offering will be used to conduct further exploration drilling and for general working capital. Closing of the Offering is anticipated to occur on or before March 30, 2011.