23:19:06 EDT Fri 09 Jun 2023
Enter Symbol
or Name

Avanti Helium Corp
Symbol AVN
Shares Issued 68,050,957
Close 2023-02-03 C$ 0.70
Recent Sedar Documents

Avanti Helium closes $6.32-million overnight offering

2023-02-06 12:42 ET - News Release

Mr. Chris Bakker reports


Avanti Helium Corp. has closed its previously announced overnight marketed best efforts public offering of units of the company at a price of 70 cents per unit, for aggregate gross proceeds of $6,324,965. Each unit consists of one common share in the capital of the company and one-half of one transferable common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of $1 until Feb. 6, 2025. The agents (as defined below) exercised in full the 15-per-cent overallotment option granted to them in conjunction with today's closing of the offering for a total of 9,035,665 units sold pursuant to the offering.

Avanti chief executive officer and director Chris Bakker states: "We thank the syndicate of agents, new investors, our existing shareholders and insiders for their continued support. The oversubscribed financing underscores the response to the initial estimated 200 mcf/d [thousand cubic feet per day] of net helium, and flow rates of the recently announced WNG 10-21 appraisal well. McDaniel & Associates Consultants Ltd. has been commissioned to update the resource estimate for the WNG helium pool and we are moving forward quickly to advance the development of our Greater Knappen project."

The offering was conducted on a best efforts agency basis by Raymond James Ltd. and Canaccord Genuity Corp., as co-lead agents and joint bookrunners, on behalf of a syndicate of agents, which included Beacon Securities Ltd. and Cormark Securities Inc.

In connection with the offering, the company paid and issued to the agents in aggregate a cash commission of $361,256 and compensation option warrants to purchase up to 516,079 common shares. Each compensation option is exercisable to acquire one agents share at an exercise price of 70 cents.

The net proceeds from the offering will be used by the company to finance development of the Greater Knappen property and for general corporate purposes.

Insiders subscribed for a total of 734,000 units for aggregate gross proceeds of $513,800. The issuance of 734,000 units to insiders is considered a related party transaction subject to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that the participation in the offering by the insiders will not exceed 25 per cent of the fair market value of the company's market capitalization.

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.

We seek Safe Harbor.

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