Electric Royalties Enters Agreement For Marketed Public Offering For Gross Proceeds Of Up To $3 Million

Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) said it has entered into an agreement with Canaccord Genuity (TSX:CF, LSE:CF) Corp on behalf of a syndicate of agents in connection with a marketed public offering up to 10,000,000 units of the company at a price of $0.30 per unit for gross proceeds of up to $3 million.
The company said it intends to use the net proceeds from the offering for general corporate purposes, including 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.
Each unit in the offering will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will be exercisable into 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.
The company said it has also granted the agents an over-allotment option exercisable in whole or in part at any time until the date that is 30 days following the closing of the offering, to sell up to an additional 15% of the number of units sold under the offering on the same terms as the units sold under the offering.
The offering is expected to be conducted in each of the provinces of Canada (other than Quebec) by way of prospectus supplement to the company’s short-form base shelf prospectus dated February 28, 2022.
The prospectus supplement is expected to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, except Quebec and will be offered in the United States on a private placement basis pursuant to one or more exemptions from the requirements of the United States Securities Act of 1933, as amended.
The closing of the offering is expected to occur on or about May 12, 2022, or such other date as may be mutually agreed to by the company and the agents, subject to satisfaction of customary closing conditions, including, but not limited, the receipt of all necessary approvals, including the conditional approval of the TSX Venture Exchange and other necessary regulatory approvals.
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.