Mar 30, 20233 min
Beacon Securities has fully exercised the remainder of its over-allotment option to sell an additional 545,000 units of Desert Mountain Energy at a price per Over-Allotment Unit of C$1.95. The Offering has resulted in aggregate gross proceeds of ~C$23mm. Each Over-Allotment Unit is comprised of one common share of the Company and one Common Share purchase warrant.
Press Release:
Desert Mountain Energy Corp. is pleased to announce that further to its news release on March 24, 2023 announcing the closing of its “best efforts” public offering of units, Beacon Securities Limited has fully exercised the remainder of its over-allotment option to sell an additional 545,000 Units of the Company at a price per Over-Allotment Unit of C$1.95 for gross proceeds of $1,062,750 and aggregate gross proceeds of $23,097,750 for the total Offering.
Each Over-Allotment Unit is comprised of one common share of the Company (each, a “Common Share”) and one Common Share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder to acquire one Common Share at an exercise price of C$2.70 per Common Share. The Warrant is exercisable for a period of twenty four (24) months from the March 24, 2023 closing of the Offering (the “Closing Date”). If, at any time after the Closing Date and prior to the expiry date of the Warrants, the volume weighted average trading price of the Company’s common shares on the TSX Venture Exchange is greater than C$4.50 for a period of 10 consecutive trading days, the Company may, within 10 business days of the occurrence of such event, accelerate the expiry date of the Warrants by giving notice (the “Warrant Acceleration Notice”) to the holders of the Warrants, and issuing a concurrent press release, and, in such case, the expiry date of the Warrants shall be the date specified by the Company in the Warrant Acceleration Notice, provided such date shall not be less than 30 trading days following delivery of the Warrant Acceleration Notice.
In connection with this closing of the Over-Allotment Option, the Company paid to the Agent a cash fee of $63,765 and issued to the Agent 32,700 compensation options (the “Agent’s Compensation Options”). Each Agent’s Compensation Option entitles the holder thereof to purchase one Common Share at the Issue Price for a period of twenty four (24) months from the Closing Date.
The Offering was made pursuant to a short form prospectus filed in each of the provinces of Canada with the exception of Québec. A copy of the short form prospectus, which contains important information relating to the Units, and other matters, is available on SEDAR at www.sedar.com.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws, and may not be offered or sold in the “United States” or to “U.S. persons” (as such terms are defined in Regulation S under the U.S. Securities Act) absent registration under the U.S. Securities Act and all applicable U.S. state securities laws, or in compliance with an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.