In a sign of the waning interest in its story, Aston Bay Holdings (TSXV: BAY) has been forced to reprice its ongoing brokered financing dramatically lower.
The financing, which was originally announced back on September 5 amid its recent run-up, has been repriced 58% lower following a sharp drop in the share price.
The brokered financing was originally priced at $0.19 per unit, with each unit set to contain one common share and one common share purchase warrant. Warrants were priced at $0.29, and contained a two year expiry. The offering, for proceeds of up to $5.0 million, was expected to see the sale of 26.3 million units.
Under the revised terms, Aston Bay is now looking to sell 47.5 million units for gross proceeds of just $3.8 million. The offering sees units instead sold at $0.08 per each, with each unit again containing one common share and one common share purchase warrant. Warrants meanwhile have been repriced dramatically lower, with the exercise price now at just $0.12 per each, while the expiry remains at two years.
READ: Aston Bay Uses Excitement At Storm Copper Project To Raise Funds For Virginia Assets
The company may raise up to $1.0 million in additional funds via a concurrent non-brokered financing with substantially the same terms.
The funds from the financing notably will be used at the firms Virginia properties, rather than its Storm Copper project which has been the focus of investor attention as of late.
Aston Bay Holdings last traded at $0.065 on the TSX Venture.
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