First Helium arranges $2.5-million private placement 0.06¢ https://stockhouse.com/news/press-releases/2024/10/16/first-helium-announces-private-placement
2024-10-16 18:27 ET - News Release
Mr. Edward Bereznicki reports
FIRST HELIUM ANNOUNCES PRIVATE PLACEMENT
First Helium Inc. has arranged a non-brokered private placement financing of 41,666,667 units of the company at a price of six cents per unit, for aggregate gross proceeds of $2.5-million.
Each unit will comprise one common share in the capital of the company and one transferable common share purchase warrant. Each warrant will be exercisable to acquire one share at a price of nine cents per share for a period of 36 months from the date of issuance, subject to an acceleration clause.
As part of the private placement offering, the company has received significant lead orders from a key insider and another significant shareholder totalling $2-million. Other members of the company's management team will also participate in the private placement offering.
The company intends to use the net proceeds from the private placement offering to finance additional asset development and operating expenses on its Worsley project, as well as for general working capital.
The company may pay finders' fees on a portion of the offering, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation.
If the 20-day volume-weighted average trading price of the shares as quoted on the TSX Venture Exchange is equal to or greater than 12 cents at the close of any trading day, then the company may, at its option, accelerate the expiry date of the warrants by issuing a news release announcing that the expiry date of the warrants shall be deemed to be on the 30th day following the issuance of the warrant acceleration news release. All warrants that remain unexercised following the accelerated expiry date shall immediately expire and all rights of holders of such warrants shall be terminated without any compensation to such holder.
The closing of the private placement offering is subject to the receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange. All securities issued pursuant to the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws. There are no material facts or material changes regarding the company that have not been generally disclosed.
Members of the company's management team will participate in the private placement offering and, upon closing, insider participation will be in excess of 25 per cent of the private placement. The issuance of securities to insiders pursuant to the private placement offering will be considered to be a related party transaction subject to the requirements of TSX-V Policy 5.9 and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that amount invested in the private placement by the insiders will not exceed 25 per cent of the company's market capitalization.
Certain insiders may sell shares of the company from their personal holdings and use the proceeds generated from the sale of these shares to subscribe for newly issued treasury securities under this private placement offering. It is anticipated that such subscriptions will amount to not less than $500,000.
About First Helium Inc.
Led by a core senior executive team with diverse and extensive backgrounds in oil and gas exploration and operations, mining, finance, and capital markets, First Helium seeks to be one of the leading independent providers of helium gas in North America.
First Helium holds over 53,000 acres along the highly prospective Worsley trend in Northern Alberta, which has been the core of its exploration and development drilling activities to date.
Building on its successful 15-25 helium discovery well at the Worsley project, the company has identified numerous follow-up drill locations and acquired an expansive infrastructure system to facilitate future exploration and development across its Worsley land base. Cash flow from its successful oil wells at Worsley has helped support First Helium's contionuing exploration and development growth strategy. Further potential oil drilling locations have also been identified on the company's Worsley land base.
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