Osisko Development (TSXV: ODV) is expecting to list on the New York Stock Exchange – and is putting its money where its mouth is. The firm this morning announced that it will be conducting a financing, the proceeds of which will not be able to the company until it successfully lists on the NYSE.
Under the terms of the financing, Osisko Development will look to sell 2.9 million subscription receipts, each priced at US$3.50 per each. Each receipt will be exchanged for one unit once conditions are met, with each unit containing one common share and one common share purchase warrant.
Warrants under the offering are valid for a period of five years following the date of issue, and contain an exercise price of US$6.00 per share.
The offering is being conducted in connection with the proposed listing of Osisko Development on the NYSE. Confident that it will achieve this listing, the company is making a condition of the escrow release for the subscription receipts that the company must achieve this listing to access the capital raised. Provided this is achieved, funds from the offering are to be used for the development of its mineral assets and for general corporate purposes.
The company also identified that a consolidation of its common shares may be required to achieve such listing.
Osisko Development last traded at $4.74 on the TSX Venture.
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