RHCCF - Royal Helium Announces Upsizing of Previously Announced LIFE Offering of Units to $5175000 | Benzinga
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SASKATOON, Saskatchewan, Nov. 08, 2023 (GLOBE NEWSWIRE) -- Royal Helium Ltd. (TSXV:RHC) (OTCQB:RHCCF) ("Royal" or the "Company") is pleased to announce that, in connection with its previously announced overnight marketed offering (the "Offering") of units of the Company (each, a "Unit") at a price of $0.24 per Unit, it is increasing the size of the Offering to $5,175,000 in aggregate gross proceeds. The Offering is expected to close in two tranches, with the first tranche being in the amount of $4,500,000 and the second tranche being in the amount of $675,000. The Company is expected to enter into an underwriting agreement with Research Capital Corporation as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, including Cormark Securities Inc. and Eight Capital (collectively, the "Underwriters").
Each Unit shall be comprised of one common share of the Company (a "Common Share") and one purchase warrant of the Company (a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.31 for a period of 36 months from the closing of the Offering. The Company will use commercially reasonable efforts to obtain necessary approvals to list the Warrants for trading on the TSX Venture Exchange.
The net proceeds from the Offering will be used for multi-well completions at Val Marie, Ogema and Steveville, design and engineering for offtake gas facilities, and for working capital and general corporate purposes.
The first tranche of the Offering is anticipated to close on or about November 14, 2023 ("Closing"), or such later date as the Company and the Underwriters may determine. The second tranche of the Offering is anticipated to close on or about December 14, 2023. The Closing is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.
The Offering will be conducted pursuant to the amendments to National Instrument 45-106 – Prospectus Exemptions ("NI 45-106") set forth in Part 5A thereof (the "Listed Issuer Financing Exemption") to purchasers resident in Canada, except Québec, and/or other qualifying jurisdictions. ...