Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) told investors it has commenced an overnight marketed offering of units of the company at $0.24 per unit for aggregate gross proceeds of $3 million.
The company said it plans to use the net proceeds from the offering 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.
Each unit will include one common share and one purchase warrant, with each warrant entitling the holder to purchase an additional share at an exercise price of $0.31 for 36 months from the closing of the offering.
It is being led by Research Capital Corporation as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters. Royal Helium said it has granted the underwriters an option to increase the size of the offering by up to 15% of the number of units by giving written notice at any time up to 48 hours before the closing of the offering.
The offering, which is expected to close on or about the week of November 13, 2023, is being conducted under the amendments to National Instrument 45-106 – Prospectus Exemptions (the Listed Issuer Financing Exemption) to purchasers resident in Canada, except Québec, and/or other qualifying jurisdictions.