- NioCorp Developments (NB, Financial) announces a $20.0 million public offering at $2.60 per share.
- The offering includes a 15% over-allotment option for underwriters.
- Maxim Group LLC serves as the sole book-running manager for the deal.
NioCorp Developments Ltd. (NB) has disclosed the pricing details of its underwritten public offering of common shares. The company aims to raise $20.0 million in gross proceeds by issuing 7,692,308 common shares at a price of $2.60 per share. This offering price represents a significant 31% discount to the current market price of $3.79, aimed at attracting investors despite potential dilution concerns.
The offering includes the issuance of pre-funded warrants as alternatives to common shares and provides the underwriter with a 30-day option to purchase up to an additional 15% of the initial common shares offered. This capital-raising move has been structured under an effective shelf registration statement on Form S-3, and the transaction is expected to close on or about April 21, 2025, subject to the satisfaction of customary closing conditions.
Maxim Group LLC is acting as the sole book-running manager and underwriter for the offering. Importantly, this offering is being conducted excluding Canadian purchasers. The proceeds are intended to support NioCorp's ongoing projects, including its Elk Creek Project, which focuses on producing niobium, scandium, and titanium, as well as evaluating the potential for rare earth production.
While the offering provides NioCorp with the necessary liquidity, the substantial discount on the share price indicates market skepticism about the company’s immediate prospects, potentially influencing the stock's value going forward. Investors and market participants will be closely watching how these funds are utilized to advance NioCorp's strategic initiatives.
