Avanti Helium Increases Private Placement Financing Size

Avanti Helium Expands Its Private Placement Financing

Avanti Helium Corp. (TSXV: AVN) recently made headlines with an announcement regarding an upsize in its non-brokered private placement financing. The Company is moving forward with great enthusiasm as it increases the offering from 13,363,333 units to a robust 17,030,000 units. This adjustment aims to yield aggregate gross proceeds of approximately $1,532,700 at a unit price of $0.09.

Details of the Private Placement Offering

The offering will consist of units, each comprising one common share and one share purchase warrant. Each warrant grants the holder the right to purchase an additional share for $0.15 within a three-year timeframe. This structure is designed to be appealing to prospective investors who are looking for a mix of security and potential upside.

Significance of Chris Bakker's Participation

Chris Bakker, the Chief Executive Officer of Avanti, is set to subscribe for 2,944,444 units, contributing $265,000 towards the fundraising initiative. This personal investment is categorized as a 'related party transaction.' According to regulations, such transactions typically require additional scrutiny, but in this case, the Company expects to be exempt from formal evaluation and minority shareholder approval under the Multilateral Instrument 61-101 guidelines.

Utilization of Proceeds

The proceeds from this financing are earmarked for ongoing project costs and general working capital. This strategic allocation will enable Avanti to continue its operations smoothly while also exploring additional growth opportunities in the helium market.

Finder's Fees and Conditions

In line with standard practices, the Company may pay finder’s fees, either in cash or securities, to support the offering. Such fees are common in private placements to incentivize brokers and financial advisors.

Securities Regulations and Hold Period

As with any securities issuance, all securities resulting from this offering will be subject to a hold period of four months and one day. This regulatory measure ensures that the securities cannot be traded immediately, allowing for price stabilization.

Closing Date and Market Acceptance

The anticipated closing date for this upsize offering is around January 13, 2025, pending acceptance from the TSX Venture Exchange. This step is crucial as it marks the formalization of the placement and the Company’s commitment towards enhancing its capital base.

About Avanti Helium Corp.

Avanti Helium is on a mission to explore and develop helium resources, focusing on areas abundant in this precious gas. Helium is increasingly in demand due to its integral role in advanced technology and medical applications. Avanti's expert team is dedicated to harnessing helium, contributing to global supply and fostering sustainable development in energy.

Frequently Asked Questions

What is the purpose of Avanti's private placement financing?

The financing aims to secure funds for ongoing project expenses and general working capital to support Avanti Helium's operations.

How does the share purchase warrant work?

Each warrant allows an investor to purchase an additional share of the Company at $0.15 within a three-year period from issuance.

Who is Chris Bakker?

Chris Bakker is the Chief Executive Officer of Avanti Helium and is participating in the private placement by investing significantly in the units offered.

What is the hold period for securities issued in the offering?

All securities issued will have a hold period of four months and one day after issuance, during which they cannot be traded.

Where can I find more information about Avanti Helium Corp.?

More information about the Company and its projects can be found on the Avanti Helium Corp. website, which provides insights into their operations and development plans.

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