Osisko Development Announces NYSE Listing and Satisfaction of Escrow Release Condition for US$119.4 Million Subscription Receipt Financing
May 27 2022 - 10:30AM
Osisko Development Corp. ("
Osisko Development" or
the "
Company") (ODV: TSX-V & NYSE) is pleased
to announce that its common shares (each, a "
Common
Share") have commenced trading on the New York Stock
Exchange ("
NYSE") under the symbol "ODV".
Consequently, the Company has satisfied the
escrow release condition relating to the 34,093,768 subscription
receipts of the Company (the "Subscription
Receipts") for gross proceeds (including earned interest)
of US$119.4 million (the "Escrowed Funds"), which
were issued on a non-brokered private placement basis (the
"Offering").
The Escrowed Funds have been released to the
Company, and each Subscription Receipt has been automatically
converted into (i) one-third of one Common Share1, and (ii)
one-third of one Common Share purchase warrant of the Company (each
whole warrant, a "Warrant"), with each Warrant
entitling the holder thereof to purchase one Common Share at a
price of US$18.001 until May 27, 2027.
Following the conversion of the 34,093,768
Subscription Receipts (which were issued prior to the Share
Consolidation), a total of 11,363,933 Common Shares and 11,363,933
Warrants (entitling the holders thereof to purchase up to
11,363,933 Common Shares) have been issued.
A portion of the net proceeds of the Offering
will be used to fund the cash consideration for the acquisition of
Tintic Consolidated Metals LLC, with the remaining funds to be used
to advance the development of the Company's mineral assets and for
general corporate purposes. All securities under the Offering are
subject to a hold period expiring four months and one day from the
date of issue pursuant to applicable Canadian Securities laws.
About Osisko Development
Osisko Development Corp. is uniquely positioned
as a premier gold development company in North America to advance
the Cariboo Gold Project and other Canadian and Mexican properties,
with the objective of becoming the next mid-tier gold producer. The
Cariboo Gold Project, located in central British Columbia, Canada,
is Osisko Development's flagship asset. The considerable
exploration potential at depth and along strike distinguishes the
Cariboo Gold Project relative to other development assets. Osisko
Development's project pipeline is complemented by its interest in
the San Antonio gold project, located in Sonora, Mexico.
For further
information about Osisko Development Corp., please
contact: |
Jean Francois Lemonde, VP
Investor RelationsTelephone: (514) 299-4926Email:
jflemonde@osiskodev.com |
|
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Cautionary Note Regarding Forward-Looking
Information
Certain statements contained in this news
release may be deemed "forward‐looking statements" within the
meaning of applicable Canadian securities laws and within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. These forward‐looking statements, by
their nature, require Osisko Development to make certain
assumptions and necessarily involve known and unknown risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in these forward‐looking
statements. Forward‐looking statements are not guarantees of
performance. Words such as "may", "will", "would", "could",
"expect", "believe", "plan", "anticipate", "intend", "estimate",
"continue", or the negative or comparable terminology, as well as
terms usually used in the future and the conditional, are intended
to identify forward‐looking statements. Information contained in
forward‐looking statements, including with respect to the use of
proceeds of the Offering and the business objectives of Osisko
Development, is based upon certain material assumptions that were
applied in drawing a conclusion or making a forecast or projection,
including management's perceptions of historical trends, current
conditions and expected future developments, public disclosure from
operators of the relevant mines, as well as other considerations
that are believed to be appropriate in the circumstances. Osisko
Development considers its assumptions to be reasonable based on
information currently available, but cautions the reader that their
assumptions regarding future events, many of which are beyond the
control of Osisko Development, may ultimately prove to be incorrect
since they are subject to risks and uncertainties that affect
Osisko Development, and its business. For additional information
with respect to these and other factors and assumptions underlying
the forward-looking statements made in this news release concerning
Osisko Development, please see the risks described in the
management's discussion and analysis of Osisko Development and
annual information form of Osisko Development for the year ended
December 31, 2021, as amended, which are available electronically
on SEDAR ( www.sedar.com) under Osisko Development's issuer profile
and on the U.S. Securities Exchange Commission’s EDGAR website
(www.sec.gov). The forward looking statements set forth herein
concerning Osisko Development reflect management's expectations as
at the date of this news release and are subject to change after
such date. Osisko Development disclaims any intention or obligation
to update or revise any forward looking statements, as a result of
new information, future events or otherwise, other than as required
by law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release. No stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
1 On May 4, 2022, the Common Shares were
consolidated on the basis of one post-consolidation Common Share
for every three pre-consolidation Common Shares (the
"Share Consolidation").
Accordingly, the number of Common Shares and Warrants issued upon
the conversion of the Subscription Receipts (which, for the
avoidance of doubt, were issued prior to the Share Consolidation)
has been adjusted to give effect to the Share Consolidation.
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