/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
SASKATOON, SK, June 8, 2021
/CNW/ - Royal Helium Ltd. ("Royal" or the
"Company") (TSXV: RHC) announces that the Company has closed
its previously announced prospectus offering of units ("Units") on
a bought deal basis of 34,500,00 Units, issued at $0.50 per Unit, for gross proceeds of
$17.25 million (the "Offering"),
inclusive of 4,500,000 Units issued pursuant to the full exercise
of the over-allotment option granted to the underwriters on closing
of the Offering.
Each Unit is comprised of one common share of the Company and
one-half of one common share purchase warrant (each whole warrant,
a "Warrant"). Each Warrant entitles the holder thereof to
acquire one additional common share of the Company at an exercise
price of $0.75 per share for a period
of 24 months following the closing of the Offering, provided that
the Warrants will be subject to the right of the Company to
accelerate the expiry date of the Warrants by providing notice in
writing to the holders of Warrants if the daily volume weighted
average trading price of the common shares of the Company on the
TSX Venture Exchange (the "TSXV") is greater than $1.25 per common share for the preceding 10
consecutive trading days. The Warrants have been
conditionally approved for listing on the TSXV and are expected to
be listed for trading on the TSXV following the close date of the
Offering under the symbol RHC.WT, subject the satisfaction of the
listing conditions of the TSXV.
Cormark Securities Inc. and Eight Capital acted as lead
underwriters (the "Lead Underwriters") in connection with the
Offering, with a syndicate including Canaccord Genuity Corp.
(together with the Lead Underwriters, the
"Underwriters").
As consideration for the services provided by the Underwriters
in connection with the Offering, the Underwriters received: (a) a
cash commission equal to 7% of the gross proceeds of the Offering;
and (b) that number of non-transferable compensation warrants (the
""Compensation Warrants"") as is equal to 7% of the number of Units
issued under the Offering. Each Compensation Warrant is exercisable
to acquire one unit (""Broker Warrant Unit""). Each Broker
Warrant Unit will be comprised of one common share and one-half of
one common share purchase warrant (""Broker Warrant Unit
Warrant""). Each Broker Warrant Unit Warrant will have the same
terms as the Warrants issuable pursuant to the Offering.
The net proceeds from the Offering will be used to fund
exploration and development of the Company's Climax and Bengough projects and for general working
capital purposes.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any securities in the United States. The securities have not
been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act"), or any state
securities laws, and may not be offered or sold within the "United States" or to "U.S. Persons" (as
such terms are defined in Regulation S under the U.S. Securities
Act) unless registered under the U.S. Securities Act and applicable
state securities laws or unless an exemption from such registration
is available.
About Royal Helium Ltd.
Royal is focused on the exploration and development of primary
helium production in southern Saskatchewan. With over 400,000 hectares of
prospective helium lands held under permits, leases and
applications, Royal is one of the largest helium leaseholders in
North America. Located next to
highways, roads, cities and importantly close to existing oil and
gas infrastructure, Royal's projects were methodically evaluated
for helium potential for over two years, and have been vetted by
helium experts, professional geologists and engineers.
For more information, please contact Andrew Davidson, the Chairman, President and CEO
of the Company.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Neither 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 release.
This release includes certain statements that may be deemed
to be "forward-looking statements". All statements in this release,
other than statements of historical facts, that address events or
developments that management of the Company expects, are
forward-looking statements. Although management believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance, and actual results or developments may differ
materially from those in the forward-looking statements. The
Company undertakes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors, should change. Factors that could cause actual results to
differ materially from those in forward-looking statements, include
market prices, exploration and development successes, continued
availability of capital and financing, and general economic, market
or business conditions. Please see the public filings of the
Company at www.sedar.com for further information.
SOURCE Royal Helium Ltd.