Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) has announced the closing of its previously announced marketed public offering under which it issued 11,500,000 units at a price of $0.30 per unit for aggregate gross proceeds of $3,450,000.
The total included 1,500,000 units issued at the offering price for gross proceeds of $450,000 in connection with the full exercise of the over-allotment option granted to the agents under the offering.
The company said it intends to use the net proceeds for funding potential future acquisitions of royalties and other interests, targeting commodities that enable the clean energy transition, such as lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper, as well as for working capital and general corporate purposes.
Each unit in the offering is comprised of one common share in the capital of the company and one common share purchase warrant. Each warrant can be exercised for one common share at an exercise price of $0.45 per warrant share for a period of 36 months following the closing of the offering, subject to adjustments in certain circumstances.
Canaccord Genuity (TSX:CF, LSE:CF) Corp acted as the lead agent and sole bookrunner of the offering, with PI Financial Corp. and Research Capital Corporation also acting as agents.
In connection with the offering, the agents received an aggregate cash commission equal to 7% of the gross proceeds of the offering. The agents also received, as additional compensation, non-transferable compensation warrants exercisable to purchase up to 805,000 common shares each at the offering price, subject to adjustments in certain circumstances, for a period of 24 months following the closing of the offering.
The offering was conducted under a supplement dated May 5, 2022, to the company’s short-form base shelf prospectus dated February 28, 2022, filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, except Quebec.
The offering remains subject to final acceptance by the TSX Venture Exchange.
Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications.
The company has a growing portfolio of 18 royalties, including one royalty that currently generates revenue. It is focused predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition via the underlying commodities required to rebuild the global infrastructure over the next several decades towards a decarbonized global economy.
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