Mr. Chris Bakker reports
AVANTI HELIUM ANNOUNCES PRICING OF OVERNIGHT MARKETED BEST EFFORTS PUBLIC OFFERING OF UNITS
Avanti Helium Corp. has released the pricing and terms of its previously announced overnight marketed best efforts public offering of units of the company. The offering is being conducted on a best efforts agency basis for the issuance of 7,575,758 units at a price of 66 cents per unit, for gross proceeds of $5-million.
Each unit will consist of one common share in the capital of the company and one transferable common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of 80 cents for 24 months from the date of issuance.
The offering is expected to be completed pursuant to the terms and conditions of an agency agreement to be entered into between the company, Raymond James Ltd., as lead agent and sole bookrunner, and a syndicate of agents, which includes Beacon Securities Ltd. and Cormark Securities Inc.
The agents, in their sole discretion, will have an option to offer for sale up to an additional 15 per cent of the aggregate number of units sold pursuant to the offering, on the same terms of the offering, for market stabilization purposes and to cover overallotments, exercisable in whole or in part within 30 days following the date of closing of the offering, for additional gross proceeds of up to approximately $750,000. The overallotment option may be in the form of units only, common shares only, warrants only, or any combination thereof.
The company will file today an amended and restated preliminary short form prospectus with the securities regulatory authorities in each of the provinces of Canada (other than Quebec), amending and restating the preliminary short form prospectus filed on Oct. 6, 2022, setting out the terms of the offering. There will not be any sale of units until a receipt for the final short form prospectus has been issued.
Closing of the offering is expected to occur on or about Oct. 24, 2022, and is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities. The proceeds raised from the sale of units under the offering are expected to be used by the company to finance exploration drilling on the company's lands and for general corporate purposes.
About Avanti Helium Corp.
Avanti Helium is focused on the exploration, development and production of helium across Western Canada and the United States. Avanti's professional oil and gas exploration and production team is actively targeting untapped potential helium reserves to help meet the increasing global demand for an irreplaceable and scarce element critical to advanced technology, medical and space exploration industries.
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