- NioCorp Developments (NB, Financial) raised approximately $20.8 million through its recent public offering.
- The offering involved 7,692,308 common shares at $2.60 each, with an additional $0.8 million from partial over-allotment.
- Maxim Group acted as the sole book-running manager and underwriter for the offering.
NioCorp Developments Ltd. (NASDAQ: NB) has successfully closed its underwritten public offering in the United States, securing total gross proceeds of approximately $20.8 million. This substantial capital influx was achieved through the sale of 7,692,308 common shares at a price of $2.60 per share, raising $20.0 million.
Additionally, the offering saw the underwriter partially exercise its over-allotment option, resulting in the sale of an extra 323,504 shares and generating an additional $0.8 million. This strategic financial move increases NioCorp's financial flexibility, although it results in some dilution for existing shareholders.
Maxim Group served as the sole book-running manager and underwriter for the offering, conducted under an effective shelf registration statement on Form S-3. This offering was primarily available to investors in the United States and other regions outside Canada, excluding Canadian purchasers.
The successful fundraising represents a significant milestone for NioCorp, reinforcing its cash position and underlining its ability to tap into public markets. Despite the 8.5% discount to the current trading price of $2.84, typical for secondary offerings, the capital raise showcases NioCorp's potential for future growth while tempering enthusiasm with the reality of shareholder dilution.
