Capital Increase Oversubscribed by 50%
The helium company Pulsar Helium Inc. (TSXV:PLSR; OTCQB:PSRHF; FRA: Y3K) is expected to begin trading on the London AIM stock exchange from next Friday, October 18, 2024, at 8 AM London time, under the ticker AIM:PLSR. The AIM listing was preceded by the successful completion of a heavily oversubscribed placement at a subscription price of £0.25, which is equivalent to CAD 0.45.
Including a pre-IPO cornerstone investment by the London broker OAK Securities amounting to £1.125 million, the total gross funds raised before costs amount to £5 million (CAD 9 million). Through the fundraising shares, as well as the previous cornerstone investment and shares issued as fees for the transaction, a total of 21,440,000 new common shares will be issued. The company will continue to be listed on the TSX Venture Exchange (“TSX-V”) in Canada and the OTCQB Venture Market in the United States, as well as on the Frankfurt Stock Exchange in Germany.
At the issue price and following the issuance of the new common shares, the company’s market capitalization at admission would be approximately £31.6 million (CAD 56.5 million). The issue price represents a discount of approximately 14.1% to the closing price of the company’s shares (on the TSX-V) prior to the announcement of the capital raise.
Thomas Abraham-James, President CEO of Pulsar, commented: “We are extremely pleased with the outcome of the capital raise and our admission to AIM. The fundraising itself was oversubscribed by more than 50%, reflecting the strong support and confidence of new and existing shareholders. As the funds raised are sufficient for our short-term work programs, we decided not to accept the additional funds offered, as we did not want to risk further dilution ahead of what is expected to be an exciting time for the company.”
Upon admission, Pulsar Helium will additionally issue 1,612,500 broker warrants to OAK Securities in connection with the capital raising and the cornerstone investment. Each broker warrant entitles the holder to purchase one common share at a price of 25 pence per broker warrant share for a period of five years. Additionally, in connection with the admission, 500,000 nomad warrants will be issued to Strand Hanson Limited, with each nomad warrant entitling the holder to purchase one common share at a price of 25 pence per nomad warrant share for a period of two years. Strand Hanson Limited acts as the company’s nominated and financial adviser in connection with the admission, as well as a joint broker upon admission. OAK Securities also received a cash commission of 10% of the gross proceeds from the cornerstone investment and will receive 7.5% of the gross proceeds from the fundraising.
The net proceeds from the capital raise, together with the company’s existing funds, including the cornerstone investment, are primarily intended to be used to advance the development of the company’s Topaz Helium Project in Minnesota, USA. In particular, plans include deepening the Jetstream #1 borehole, as well as conducting further seismic studies and carrying out a preliminary economic assessment.
