Neo Lithium Corp NTTHF

recent pp and special warrants

[Specific]

came across this info about the $30m financing

Question:
NLC recently raised $30m TORONTO , Jan. 20, 2021 /CNW/ - Neo Lithium Corp. (" Neo Lithium " or the " Company ") (TSXV: NLC) (OTCQX: NTTHF) (FSE: NE2) is pleased to announce that it has entered into an agreement with Stifel GMP, on its own behalf and on behalf of syndicate of underwriters (together with Stifel GMP, the " Underwriters "), pursuant to which the Underwriters have agreed to purchase, on a bought deal private placement basis, 9,900,000 special warrants of the Company (the " Special Warrants ") at a price of C$3 .05 per Special Warrant (the " Offering Price ") for aggregate gross proceeds to the Company of C$30,195 ,000 (the " Offering "). Each Special Warrant shall be issued under a special warrant indenture and shall entitle the holder thereof to receive, without payment of additional consideration, one common share of the Company (each a " Common Share "). --------------------------------------------------------------

what is the benefit to subscribers to receive special warrants instead of common shares ? thank-you

Answer:

They are for all intents the same thing. Special warrants are issued first, and 'become' common shares once a prospectus has been filed, or after a four-month holding period. It is a regulatory move to speed up a capital raise prior to full completion of a prospectus.