Emerita Resources (TSXV: EMO) evidently has strong investor demand for its equity. The company this afternoon announced that it has upsized its previously announced private placement, bringing the total bought deal financing to $16.0 million.
Under the terms of the financing, the company will be selling a total of 14.5 million units at a price of $1.10 per unit. Each unit contains one common share and one half of a common share purchase warrant, with warrants valid for a period of two years and containing an exercise price of $1.50 per share.
An over-allotment option has also been granted in connection with the financing, which would bring an additional $4.0 million to company coffers.
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Proceeds from the financing are to be used for working capital and general corporate purposes.
The financing is slated to close July 15.
The offering has reportedly been largely subscribed to by institutional investors, with the initial book of $10.0 million being filled within only hours of the initial announcement, as per CEO David Gower whom joined us on SmallCapSteveLIVE this afternoon.
Emerita Resources last traded at $1.24 on the TSX Venture.
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