Desert Mountain Energy (TSXV: DME) this morning announced that it will be conducting a $9.0 million non-brokered private placement this morning, demonstrating the high degree of demand from investors for helium-focused resource equities. The placement will see up to 5,625,000 units of the company sold.
Units sold via the offering will be priced at $1.60 each, and be comprised of one common share and one common share purchase warrant. Each warrant is excersiable at $2.00, and comes with an expiry of two years from the date of issuance. An acceleration clause is also present on the warrants, which enables the company to force the conversion of the instrument should the closing price of the equity exceed $3.50 for ten consecutive trading sessions.
The company has also reserved the right to expand the offering by 5% at its own discretion.
Sponsored · Nord Precious Metals
Proceeds from the financing are to be used to continue the exploration and development of the firms helium projects, as well as for working capital and general corporate purposes. Further, the company has indicated that it “looking forward to moving ahead quickly with a goal of generating income from our first wells beginning in the fourth quarter of 2021.”
A closing date for the financing was not provided.
Desert Mountain Energy last traded at $1.62 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.
