Rackla Metals Inc. Announces Increased Private Placement:
Vancouver, British Columbia – March 31, 2025 – Rackla Metals Inc. (TSX-V: RAK) (the “Company”), is thrilled to provide an update on its previously announced non-brokered private placement (the “Offering”). The Offering, which was initially slated to raise gross proceeds of up to $2,250,000, has now been increased to a total of $2,994,150.
Charity Flow-Through Unit Offering:
The Company will proceed with a $2,234,400 charity flow-through unit offering (the “CFT Offering”). Each unit will consist of one common share of the Company and one-half of a warrant. The price per unit will be $0.21. Every warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.15 for one year following the closing of the Offering.
It is essential to note that each common share issued in the CFT Offering will be considered a “flow-through share” (as defined by subsection 66(15) of the Income Tax Act, Canada). This designation offers significant tax advantages to investors, allowing them to deduct an amount equal to the total consideration paid for the flow-through shares from their taxable income in the year of the investment.
Hard-Dollar Unit Offering:
Additionally, the Company will conduct a $759,750 hard-dollar unit offering (the “HD Offering”). The price per unit in this offering will be $0.15. As with the CFT Offering, each unit will consist of one common share and one-half of a warrant. Warrant holders will have the right to purchase an additional common share at $0.15 for one year following the closing of the Offering.
Impact on Individual Investors:
For individual investors, this increased private placement presents an excellent opportunity to invest in Rackla Metals Inc. and enjoy substantial tax benefits. By participating in the CFT Offering, investors can reduce their taxable income in the year of investment, potentially leading to a lower overall tax burden.
Impact on the World:
From a broader perspective, this increased private placement can have several positive effects on the world. First, it demonstrates the confidence investors have in Rackla Metals Inc. and the potential of its business. Second, the tax benefits associated with the CFT Offering can encourage more people to invest in resource exploration companies, contributing to the growth of the mining industry and the economy as a whole.
Conclusion:
Rackla Metals Inc. has announced an increase in its non-brokered private placement, raising the total gross proceeds to $2,994,150. This offering includes a charity flow-through unit offering and a hard-dollar unit offering. The tax advantages associated with the CFT Offering can be significant for individual investors, potentially reducing their taxable income in the year of investment. Moreover, this increased private placement can have a positive impact on the world by boosting investor confidence in Rackla Metals Inc. and encouraging more people to invest in the mining industry.
- Rackla Metals Inc. increases private placement to $2,994,150
- Charity flow-through unit offering and hard-dollar unit offering
- Tax benefits for individual investors in CFT Offering
- Positive impact on investor confidence and mining industry
