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Fort Capital advises Canadian Premium Sands on $9.6M equity placement

Transaction Details

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Canadian Premium Sand Inc. (“CPS” or the “Company”) has announced the closing of a private placement equity financing, consisting of an $8,550,000 brokered Unit offering and a $1,080,000 non-brokered Unit offering (the “Offerings“) for total gross proceeds of $9,630,000. Each Unit is comprised of 1 common share and 1 common share purchase warrant.

CPS is developing manufacturing capacity for ultra high-clarity patterned solar glass through a Company-owned facility to be located in Selkirk, Manitoba. The Company will utilize the high-purity, low-iron silica sand from its wholly owned Wanipigow quarry leases, and renewable Manitoba hydroelectricity to provide North Americans with cost-effective, low-carbon patterned solar glass. Collectively, the net proceeds of the Offerings will be used to advance the Company’s vertically integrated patterned solar glass manufacturing facility to a shovel-ready state, so that it is ready to commence construction as early as Q1 2023.

The Offerings come shortly after CPS executed a memorandum of understanding with Korean-based conglomerate Hanwha Solutions (“Hanwha”) concerning a definitive commercial offtake agreement for patterned solar glass from the Company’s glass manufacturing facility. Hanwha, through its Qcells Division, is the largest solar panel manufacturer in North America. More information on CPS’ memorandum of understanding with Hanwha can be found here: Canadian Premium Sand Inc. Executes a Memorandum of Understanding.

Management and Directors of CPS, as well as certain of the Company’s largest shareholders, including Paramount Resources Ltd, subscribed for approximately 25% of the Offering to maintain their current ownership position in the Company.

Fort Capital Partners and Peters & Co. acted as financial advisors and placement agents with respect to the Offerings.