Cypress Development Corp (TSX-V:CYP, OTCQB:CYDVF) said it has closed its upsized bought deal offering that raised more than $18 million in gross proceeds.
The net proceeds are expected to be used to fund ongoing work, development, and permitting activities at its Clayton Valley Lithium Project in Nevada as well as for working capital and general corporate purposes.
Cypress issued a total of 9,058,000 units at $2 each and 142,000 warrants at $0.1598 each for aggregate gross proceeds of $18,138,720, which includes 1,058,000 units and 142,000 warrants issued by the company upon partial exercise of the overallotment option granted to the sole underwriter, PI Financial Corp.
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Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at $2.65 with a warrant expiry date of February 4, 2024.
The units issued were offered by way of a short form prospectus filed in each of the provinces of Canada, except Québec. The units were also offered in the US to qualified institutional buyers.
Cypress Development is a Canadian-based advanced-stage lithium exploration company, focused on developing its 100%-owned Clayton Valley project, which it is advancing towards the production of high-purity lithium hydroxide suitable for tier-one battery usage.
Also, work completed by the company led to the discovery of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation.
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