Nighthawk Hold Corp (TSX: NHK) evidently has seen significant demand from a bought deal financing announced Monday evening. The firm after the close last night indicated it would be increasing the financing from $25.0 million to $29.4 million due to excess demand.
Under the terms of the financing, the company will sell 10.0 million units of the company, as well as 9.1 million flow through units and 15.3 million premium flow through units. Pricing breaks down as follows.
- Units of the company are to consist of one common share and one half warrant, priced at $0.70 per unit.
- Flow through units are to be sold at a price of $0.81 per flow through unit, with units containing one common share and one half of a common share purchase warrant.
- Premium flow through units are to be sold at $0.98 per each, and contain one common share and one half of a common share purchase warrant.
- Each warrant is valid for a period of two years and contains an exercise price of $1.05 per share. Warrants offered under the flow through units are to be issued as a flow through share.
In terms of the financing being expanded, under the original terms the company was to sell a total of 5.4 million flow through units. That figure has now been expanded to 9.1 million as a result of demand.
An over-allotment option is also attached to the financing, which enables the underwriters to sell up to an additional 15% of the offering for a period of up to 30 days post-closing.
Proceeds from the financing are to be used for general and administrative expenses, except in the case of the flow through units, which are to be used for the purpose of exploration of the firms property in the Northwest Territories. The company is currently focused on expanding its mineral resource estimate and greenfield target testing.
The financing is slated to close May 3, 2022.
Nighthawk Gold last traded at $0.69 on the TSX.
Information for this briefing was found via Sedar and Nighthawk Gold Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
