Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) said it has secured additional financing further to its C$7,000,500 bought financing that closed on October 13, 2022, to fund the commencement of various early works projects and the engineering and design related to the construction of its helium production plant in Steveville, Alberta.
The company said, further to its closed bought financing, the syndicate of underwriters led by Cormack Securities Inc has exercised the remainder of their over-allotment options to acquire 3,050,768 units of the company at a purchase price of C$0.26 per over-allotment unit for total gross proceeds to Royal Helium of C$793,199.68.
Each over-allotment unit consisted of one share of the company and one share purchase warrant which entitles the holder to purchase one share at a price equal to C$0.32 for a period of 36 months following the closing of the offering.
READ: Royal Helium completes C$7.2M financing to fund Alberta helium production plant construction
The underwriters were paid a cash commission equal to 6% of the gross proceeds raised under the exercise of the over-allotment option, Royal Helium said.
They have also been issued broker warrants entitling the underwriters to purchase, in the aggregate, that number of units as is equal to 6% of the number of over-allotment units sold pursuant to the exercise of the over-allotment option at a price of $0.26 per unit for a period of 24 months from the closing of the offering.
Royal Helium controls over one million acres of prospective helium land across southern Saskatchewan and southeastern Alberta. The company intends to become a leading North American producer of this high-value commodity.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie