CALGARY,
AB, Nov. 10, 2023 /CNW/ - Avanti Helium
Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company")
is pleased to announce the closing of its previously announced
overnight marketed best efforts public offering (the "Offering") of
units of the Company ("Units") at a price of $0.70 per Unit, for aggregate gross proceeds of
$3,000,150. Each Unit consists of one
common share (a "Common Share") in the capital of the Company and
one half of one transferable Common Share purchase warrant (each
whole warrant, a "Warrant"). Each Warrant entitles the holder to
purchase one Common Share at an exercise price of $0.60 until November 10,
2025.
Avanti CEO and Director, Chris
Bakker states, "We thank the syndicate of agents, new
investors, our existing shareholders and insiders for their
continued support of our plans to bring forward production from the
Greater Knappen property.
The Offering was conducted on a "best efforts" agency basis by
Canaccord Genuity Corp., as lead agent and sole bookrunner, on
behalf of a syndicate of agents (collectively, the "Agents"), which
included Beacon Securities Limited and Cormark Securities Inc.
In connection with the Offering, the Company paid and issued to
the Agents in aggregate a cash commission of $146,589.82 and compensation option warrants
("Compensation Option Warrants") to purchase up to 325,756 Units
("Agents' Units"). Each Compensation Option Warrant is exercisable
to acquire one Agents' Unit at an exercise price of $0.45 until November
10, 2025. Each Agent's Unit consists of one Common
Share of the Company and one non-transferable Warrant (the "Agents'
Unit Warrants"). Each Agents' Unit Warrants entitles the
holder to purchase one Common Share at an exercise price of
$0.60 until November 10, 2025.
The net proceeds from the Offering will be used by the Company
to fund development of the Greater Knappen Property facilities and
for general corporate purposes.
Insiders subscribed for a total of 1,577,800 Units for aggregate
gross proceeds of $710,010. The
issuance of 1,577,800 Units to insiders is considered a related
party transaction subject to Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). 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 the participation in the Offering by
the insiders will not exceed 25% of the fair market value of the
Company's market capitalization.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The securities being offered have not been,
nor will they be, registered under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") and may not be
offered or sold in the United
States or to, or for the account or benefit of, U.S. persons
(as defined in Regulation S under the U.S. Securities Act) absent
registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable state
securities laws.
About Avanti Helium Corp
Avanti Helium is focused on the exploration, development, and
production of helium across western Canada and the
United States. Avanti's professional oil and gas exploration
and production team is actively targeting helium trapped in
structures to help meet the increasing global demand for an
irreplaceable and scarce element critical to advanced technology,
medical and space exploration industries. For more information,
please go to the Company's website
at www.avantihelium.com.
Forward-Looking Statements
The information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions, and expectations. They are
not guarantees of future performance. The Company cautions that all
forward-looking statements are inherently uncertain, and that
actual performance may be affected by a number of material factors,
many of which are beyond the Company's control. Such factors
include, among other things: risks and uncertainties relating to
the Company's limited operating history and the need to comply with
environmental and governmental regulations. Accordingly, actual and
future events, conditions and results may differ materially from
the estimates, beliefs, intentions, and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, the Company undertakes no
obligation to publicly update or revise forward-looking
information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Avanti Helium Corp.