Norsk Titanium (OTCQX:NORSF) announced it has secured pre-commitments for the exercise of 85.7 million outstanding warrants, raising a minimum of NOK 113 million ($10.5 million).
The commitments include contributions from its two largest warrant holders, Scatec Innovation AS and Global Portfolio Investments, which hold 20.3 million and 20 million warrants, respectively.
The exercise price is capped at NOK 1.06892 per share, with total gross proceeds potentially reaching NOK 145 million ($13 million) if all remaining warrants are exercised, the company said in a statement.
Global Portfolio Investments has also pledged to subscribe for up to 20 million additional shares in a directed share issue if any warrants remain unexercised. This measure will be executed under the authorization granted by Norsk Titanium (OTCQX:NORSF)'s board at its annual general meeting in May 2024.
The company emphasized that this additional commitment, offered without any fee or compensation, ensures adequate funding on the same terms as the warrant exercise.
Norsk Titanium (OTCQX:NORSF) intends to allocate the proceeds toward its operational needs, working capital, and the development of long-term serial production contracts for major customers in the commercial aerospace, industrial, and defense sectors.
The company expects these efforts to contribute to achieving its 2026 target of $150 million in revenue with a 30% EBITDA margin.