Star Royalties Ltd (CVE:STRR) has closed an overallotment option in connection with its C$24 million initial public offering.
The Toronto-based firm issued an additional 3.8 million shares priced at C$0.611 and another 5.1 million warrants priced at C$0.089 to raise an extra C$2.8 million.
Canaccord Genuity Corp and Desjardins Capital Markets acted as the co-lead underwriters on behalf of a syndicate that included Haywood Securities Inc, Cormark Securities Inc and Eight Capital.
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The underwriters exercised a portion of the overallotment option granted by Star in connection with the IPO, according to a release.
Star Royalties CEO Alex Pernin called the overallotment exercise a “vote of confidence” from the underwriters and investors.
“With numerous opportunities in progress and a significant pipeline of opportunities, we look forward to accretively deploying capital and growing our portfolio in the immediate term.”
Star Royalties is targeting 80% of its capital allocation to precious metals, with up to 20% available for predominantly green investments, with 70/20/10 split between cash flowing, near-term cash flow, and non-cash flowing assets.
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