Desert Mountain Energy Corp. (TSXV: DME) announced this morning that it is accelerating the expiry of certain outstanding warrants to May 24, 2021. The warrant acceleration follows continued interest among investors for the helium space as the company proves out its assets.
All of the 8,203,062 warrants issued under private placements that closed on October 2 and October 14, 2021 are being accelerated, which contain an exercise price of $2.00 per common share. Should all warrants be exercised, the company expects to raise up to $16.4 million and issue up to 8.2 million common shares.
Desert Mountain Energy reports that the early exercise would strengthen its cash position and provide the working capital needed for its objective to be a fully vertically integrated helium production company. The company reportedly had $12.8 million in cash prior to the announcement.
Desert Mountain Energy Corp. last traded at $3.66 on the TSX Venture.
Information for this briefing was found via Sedar and Desert Mountain Energy. 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.