CALGARY,
AB, Jan. 20, 2025 /CNW/ - Avanti Helium
Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company")
is pleased to announce that it has completed its non-brokered
private placement financing of 17,029,998 units of the Company
("Units") at a price of $0.09 per
Unit for aggregate gross proceeds of $1,532,700 (the "Offering").
Each Unit under the Offering consists of one (1) common share of
the Company (each, a "Share") and one (1) Share purchase warrant
(each, a "Warrant"), with each Warrant entitling the holder to
purchase one (1) additional Share at a price of $0.15 per Share until January 20, 2028.
The net proceeds of the Offering will be used for ongoing costs
associated with the Company's projects and general working capital
requirements.
In connection with the Offering, the Company paid an aggregate
of $31,152 and issued an aggregate of
198,000 Shares and 742,133 Share purchase warrants ("Finder's
Warrants") in finder's fees. Each Finder's Warrant is exercisable
to acquire one (1) Share (a "Finder's Warrant Share") at an
exercise price of $0.15 per Finder's
Warrant Share until January 20,
2028.
All securities issued under or in connection with the Offering,
including securities issuable on the exercise thereof, are subject
to a hold period expiring on May 21,
2025.
Chris Bakker, the Chief Executive
Officer and a director of the Company ("Bakker"), subscribed for
and purchased 2,944,444 Units for total consideration of
$265,000, and such participation is
considered a "related party transaction" as defined under
Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The Company is
exempt from the requirement to obtain a formal valuation and
minority shareholder approval in connection with Bakker's
participation in the Offering in reliance of Sections 5.5(a) and
5.7(a) of MI 61-101, respectively, on the basis that Bakker's
participation in the Offering did not exceed 25% of the fair market
value of the Company's market capitalization.
Investment by Chris
Bakker
As described above, Bakker, of 1810 - 840 7th Avenue SW,
Calgary, AB T2P 3G2, acquired
2,944,444 Units, comprising 2,944,444 Shares and 2,944,444 Unit
Warrants, for total consideration of $265,000 pursuant to the Offering.
Immediately prior to the closing of the Offering, Bakker
beneficially owned, directly or indirectly, 9,041,980 Shares,
3,904,250 Share purchase warrants ("Warrants") and 712,000 stock
options ("Options") of the Company, which represented approximately
9.34% of the issued and outstanding Shares on a non-diluted basis
and, assuming the exercise of the 3,904,250 Warrants and 712,000
Options, approximately 13.47% of the issued and outstanding Shares
on a partially diluted basis.
Immediately following the closing of the Offering, Bakker
beneficially owns, directly or indirectly, 11,986,424 Shares,
6,848,694 Warrants and 712,000 Options, representing approximately
10.51% of the issued and outstanding Shares on a non-diluted basis
and, assuming the exercise of the 6,848,694 Warrants and 712,000
Options, approximately 16.07% of the issued and outstanding Shares
on a partially diluted basis.
The securities of the Company held by Bakker are held for
investment purposes. Bakker has a long-term view of the investment
and may acquire additional securities of the Company either on the
open market, through private acquisitions or as compensation or
sell the securities on the open market or through private
dispositions in the future depending on market conditions, general
economic and industry conditions, the Company's business and
financial condition, reformulation of plans and/or other relevant
factors.
A copy of Bakker's early warning report will be available on the
Company's profile on SEDAR+ and may also be requested by mail at
Avanti Helium Corp., 1810 - 840 7th Avenue SW, Calgary, Alberta, T2P 3G2, Attention:
Chris Bakker or phone at (403)
384-0401.
This news release does not constitute an offer of securities for
sale in the United States. The
securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any applicable state
securities laws. Such securities may not be offered or sold within
the United States except pursuant
to an effective registration statement under the U.S. Securities
Act and the securities laws of any applicable state in the United States or pursuant to an available
exemption from the registration requirements thereof.
About Avanti Helium Corp.
Avanti is focused on the exploration, development, and
production of helium across western Canada and the
United States. Avanti's professional oil and gas exploration
and production team is actively targeting helium trapped in
structures to help meet the increasing global demand for an
irreplaceable and scarce element critical to advanced technology,
medical and space exploration industries. For more information,
please go to the Company's website
at www.avantihelium.com.
Forward-Looking Statements
The information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. The Company cautions that all
forward-looking statements are inherently uncertain and that actual
performance may be affected by a number of material factors, many
of which are beyond the Company's control. Such factors include,
among other things: statements relating to the expected timing for
the development of the helium recovery plant and timing estimates
with respect to initial production therefrom, statements relating
to the expected benefits to Avanti from the midstream agreement and
liquefaction tolling agreement, statements relating to obtaining
financing to fund associated infrastructure work for the plant,
risks associated with helium exploration, development, production,
marketing and transportation, volatility in helium prices, risks
relating to the Company's ability to access sufficient capital from
production and external sources, risks and uncertainties relating
to the Company's limited operating history and the need to comply
with environmental and governmental regulations. Accordingly,
actual and future events, conditions and results may differ
materially from the estimates, beliefs, intentions and expectations
expressed or implied in the forward-looking information. Except as
required under applicable securities legislation, the Company
undertakes no obligation to publicly update or revise
forward-looking information. Please see the public filings of the
Company at www.sedarplus.ca for further
information and risks applicable to the Company.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Avanti Helium Corp.
