Millennial Lithium arranges $21M bought deal financing Mr. Graham Harris reports
MILLENNIAL ANNOUNCES BOUGHT DEAL PUBLIC OFFERING TO RAISE GROSS PROCEEDS OF C$21 MILLION
Millennial Lithium Corp. has entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp. and Cantor Fitzgerald Canada Corp. as joint bookrunners, and including Cormark Securities Inc. and Sprott Capital Partners, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, pursuant to a short-form prospectus, six million units of the company at a price of $3.50 per unit for gross proceeds of $21-million. Each unit shall consist of one common share of the company and one-half of one common share purchase warrant. Each warrant shall be exercisable for one common share of the company for a period of 24 months from the closing date (as herein defined) at an exercise price of $4.25.
In addition, the company has granted the underwriters an option to purchase additional units at the offering price to raise additional gross proceeds of up to 15 per cent of the underwritten offering, for a period of 30 days after and including the closing date to cover overallotments, if any, and for market stabilization purposes.
The net proceeds from the offering are expected to be used by the company for exploration and development activities at the company's lithium properties in Argentina and for general working capital purposes.
Closing of the offering is expected to take place on or about March 13, 2018, and is subject to certain conditions including, but not limited to the receipt of all applicable regulatory approvals including approval of the TSX Venture Exchange.
We seek Safe Harbor.
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