Nova Royalty Corp. (TSX-V:NOVR) has announced the closing of its previously announced 'best efforts' public offering of common shares of the company for aggregate gross proceeds of $13,660,680.
Under the offering, Nova issued 4,139,600 common shares at a price of $3.30 each, which included the issuance of 287,000 common shares upon the partial exercise of the agents' over-allotment option.
The company intends to use the net proceeds of the offering for the acquisition of the net smelter return on the copper, gold and silver production from the Aranzazu project which is subject to an underlying 1.0% net smelter return royalty, and for working capital and other royalty acquisitions.
READ: Nova Royalty upsizes offering to C$12.7M for Aranzazu acquisition
The offering was conducted by PI Financial Corp., as lead agent, and Cantor Fitzgerald Canada Corporation, as co-bookrunner, on behalf of a syndicate of agents including BMO Nesbitt Burns Inc. and CIBC World Markets Inc.
Under the offering, the agents received a cash commission equal to 6.0% of the aggregate gross proceeds raised under the offering, other than proceeds received from purchasers on a president's list comprised of investors introduced by the company to the agents, for which the agents received a cash commission of up to 3.0% (4.0% with selling group concessions).
The offering was made in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador, under a prospectus supplement dated August 18, 2021, to the company's final short form base shelf prospectus for Québec, Prince Edward Island, and Newfoundland and Labrador, and amended and restated final short form base shelf prospectus for all other provinces, dated February 19, 2021.
The offering was also conducted in the United States by way of private placement pursuant to certain registration exemptions from the Securities Act of 1933, as amended.
The offering is subject to the final approval of the TSX Venture Exchange.
Nova, headquartered in Vancouver, British Columbia, is a royalty company focused on providing investors with exposure to the key building blocks of clean energy – copper and nickel.
Contact the author at jon.hopkins@proactiveinvestors.com