Canada Nickel Company (TSXV: CNC) is evidently in need of further funding, despite conducting a bought deal financing earlier this year that was upsized from $10.0 million to $12.2 million. The firm has entered into a loan facility that is short term in nature.
The loan facility, which provided the firm with US$10.0 million in funding, is being provided by Auramet. The debt is described as ensuring that the firm is “well funded through the first quarter,” after which point in time the firm expects to have concluded discussions with certain strategic investors.
The funding doesn’t come cheap, with the funds to bear interest at a rate of 1% per month – the equivalent of 12.68% per annum – with funds expected to be provided by January 5. The debt is expected to be paid back on April 5, 2022. In addition to the interest rate, the firm owes a 2% arrangement fee, and is to also issue 250,000 warrants in the company that are valid for two years at a price of $3.94 per share.
As of July 31, Canada Nickel reported a cash position of $11.5 million, despite closing a $12.2 million financing on July 27.
Canada Nickel last traded at $3.52 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
