Pulsar Helium (WKN: A3EP2C / AIM: PLSR / TSXV: PLSR) is pushing ahead with the development of its Topaz helium project in Minnesota at full speed. A new drill program comprising up to ten wells is already underway, with the aim of refining the reservoir model and creating the foundation for a final investment decision. Now, the company is receiving significant funds again from the exercise of warrants by a major shareholder, which can be used for upcoming and future activities!
As the company has just announced, ABCrescent Cooperatief U.A. exercised all 15.5 million warrants held at a price of CAD 0.36 per warrant yesterday, November 5, so that Pulsar receives CAD 5.58 million in fresh capital. This substantially strengthens the company’s balance sheet, which of course favors the further development of Topaz.
Pulsar Helium is moving forward from a position of strength
Thomas Abraham-James, President and CEO of Pulsar Helium, sees the exercise of the warrants by ABCrescent as a sign of confidence and support for his company: “By exercising their warrants, they (ABCrescent) have demonstrated their strong commitment to our vision, strengthened our liquidity position and provided approximately CAD 5.6 million in proceeds to advance the development of our Topaz helium project in Minnesota. They remain our largest shareholder and retain their seat on the Board, underscoring the depth of our partnership and their long-term commitment. This transaction significantly streamlines our capital structure by eliminating virtually all outstanding warrants and removing all perceived market overhangs. With these positive steps, we are moving forward from a position of strength and I look forward to continuing to advance Topaz and share further updates as our work progresses.”
Details on the Warrant Exercise
The ABC warrants exercised on November 5 came from a financing that Pulsar had completed in January 2024. ABC also announced that it had disposed of a total of 200,000 Pulsar common shares on November 4 and 5 on behalf of fully managed accounts. ABC now holds (directly or indirectly) 22,576,316 Pulsar common shares, representing 13.53% of the company’s issued and outstanding common shares. The new shares are scheduled to be listed on the stock exchange on November 12.
Conclusion: With the warrant exercise by ABC, Pulsar Helium not only receives substantial fresh capital for the further development of Topaz, so that the company is now truly in a “position of strength”, but according to CEO Abraham-James, the exercise has also “virtually eliminated all outstanding warrants and removed all perceived market overhangs”. In our view, this clearly improves the company’s position once again.
