Class 1 Nickel completes private placement and debt-to-equity conversion

Class 1 Nickel and Technologies Ltd. (CSE: NICO) (OTCQB: NICLF) closed a private placement that raised Cdn$320,939 and completed a share-for-debt transaction valued at Cdn$2 million, according to a company statement.

The private placement involved issuing 2,588,224 units at Cdn$0.124 per unit. Each unit includes one common share and half a warrant, with full warrants exercisable at $0.25 for three years.

The company issued 16,666,666 shares at a deemed price of Cdn$0.12 per share to settle Cdn$2 million in outstanding debt. David Fitch, the company's president and chief executive officer, acquired all shares issued in the debt conversion.

The transaction with Fitch constituted a related party transaction under securities regulations. The company relied on exemptions from formal valuation and minority shareholder approval requirements since the transaction value remained below 25% of the company's market capitalization.

All securities issued carry a statutory hold period expiring October 12, 2026. Both transactions require final approval from the Canadian Securities Exchange.

Class 1 Nickel focuses on nickel sulphide exploration and development, operating the Alexo-Dundonald Project near Timmins, Ontario, and the Somanike Project near Val-d'Or, Quebec. The company owns these komatiite-hosted nickel projects completely.

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