First Helium Increases Size of Financing Initiative
CALGARY, Alberta – First Helium Inc. (“First Helium” or the “Company”) (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) is excited to share that it plans to raise its previously announced non-brokered private placement financing from C$2,500,000 to C$3,000,000. This increase allows the Company to issue up to 50,000,000 Units at a price of $0.06 per Unit, ultimately aiming for gross proceeds of C$3,000,000.
Details of the Units and Warrant Structure
Each Unit will contain one common share and one transferable common share purchase warrant. This Warrant grants the holder the right to purchase an additional share at $0.09 per share for 36 months from the issuance date. It's crucial to note that an acceleration clause may come into play if the stock price meets a specific threshold.
Utilization of Proceeds from the Financing
The proceeds from this Private Placement Offering will primarily support asset development and operating expenses related to the Worsley project. The remaining funds will bolster general working capital, strengthening the Company's position for future opportunities.
Regulatory Compliance and Insider Participation
First Helium may pay finder's fees as part of the offering, contingent on adherence to the policies of the TSX Venture Exchange and relevant securities legislation. Interestingly, significant insider participation is expected, contributing over 25% of the private placement. This insider movement is a noteworthy aspect as it aligns the interests of management with those of investors.
Warrant Expiry Acceleration Clause
If the trading price of the shares averages $0.12 or more over a 20-day period, First Helium has the option to expedite the expiry of the Warrants. This would mean informing the market through a press release that the Warrants will expire 30 days after the announcement, emphasizing the proactive measures the Company is taking to manage their securities efficiently.
Closing and Regulatory Approvals
The Private Placement Offering's closing is targeted for October 29, 2024, depending on all necessary regulatory approvals, including acceptance from the TSX Venture Exchange. Investors can confidently engage with the assurance that all securities issued will comply with the stipulated four-month hold period in line with Canadian securities laws.
About First Helium
First Helium is led by a robust Senior Executive Team with rich backgrounds in Oil & Gas Exploration, Mining, Finance, and Capital Markets. The Company's vision is to become a key independent provider of helium gas in North America.
The Company holds over 53,000 acres across the promising Worsley Trend in Northern Alberta. This region serves as the focal point of First Helium's drilling and exploration activities, where the Company has celebrated successes, including discoveries of helium-rich wells.
Future Development and Infrastructure
Building on the success of its previous discovery wells at the Worsley project, First Helium has pinpointed numerous follow-up drilling locations. Additionally, the establishment of an extensive infrastructure framework enhances its capability for ongoing exploration and future developments.
Contact Information
For further inquiries:
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Frequently Asked Questions
What is the purpose of the private placement by First Helium?
The funds raised will support asset development and operational expenses, especially for the Worsley project.
How many units will be issued in the placement?
First Helium plans to issue up to 50,000,000 Units at $0.06 each during this placement.
What is the term for the Warrants?
The Warrants can be exercised within 36 months from the date of issuance to acquire common shares at a price of $0.09.
What happens if the share price reaches $0.12?
If the share price averages $0.12, First Helium may accelerate the expiry date of the Warrants by announcing a new expiry date.
Who is involved in the private placement?
Members of First Helium's management team are expected to participate, with insider involvement exceeding 25% of the funding raised.
