Strong demand for Osisko Development (TSXV: ODV) has lead the company to conducted a bought deal financing while its also undergoing a non-brokered private placement. The bought deal is being lead by Eight Capital, with BMO Nesbitt Burns and National Bank Financial acting as co-leads.
Under the bought deal financing, the company will look to raise $40.1 million in gross proceeds via the sale of units and/or subscription receipts. Each unit is priced at $4.45 per each, with each unit containing one common share and one common share purchase warrant. Warrants have an exercise price of $7.60 per each and are valid for a period of five years from the date of issuance.
An over-allotment option is also in play, for additional gross proceeds of up to $6.0 million.
Subscription receipts, if sold under the offering, will convert to units of the company, subject to the escrow release condition of the firm acquiring Tintic Consolidated Metals.
Proceeds from the offering are to be used for the development of the firms mineral properties and general corporate purposes. The financing is currently slated to close March 2.
The financing follows the news from two days ago that the company has upsized its non-brokered financing related to its potential New York Stock Exchange listing from US$10 million to that of US$110.3 million due to significant demand. That offering, which is yet to close, sees the sale of subscription receipts at a price of US$3.50 per each. Escrow release conditions on that financing state that the firm cannot receive the money until it meets the condition of achieving an NYSE listing.
Osisko Development last traded at $4.48 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.
