DESERT MOUNTAIN ENERGY ANNOUNCES PRIVATE PLACEMENT OFFERING
Rhea-AI Summary
Desert Mountain Energy Corp. (DMEHF) has announced a non-brokered private placement offering to raise up to CAD $2 Million. The company will offer up to 8 million units at CAD $0.25 per Unit, with each unit comprising one common share and one share purchase warrant. The warrants allow purchasing one additional share at CAD $0.35 within one year of closing.
The warrant expiry may be accelerated if the stock price reaches CAD $0.75 for at least ten consecutive trading days. Finder's fees of up to 8% in cash and 8% in finder warrants are payable. The proceeds will fund the development of the company's New Mexico natural gas and Helium projects, Arizona Helium projects, working capital, and general corporate purposes. The units will have a 4-month hold period and the placement requires TSX Venture Exchange approval.
Positive
- Raising additional CAD $2 Million in capital for project development
- Warrant structure provides potential for additional future funding at CAD $0.35 per share
Negative
- Potential dilution for existing shareholders through 8 million new units
- Additional dilution possible through finder's warrants
- 4-month hold period restricts immediate trading of new shares
News Market Reaction
On the day this news was published, DMEHF declined 7.54%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
TSX.V: DME
Each Unit will consist of one common share of the Company and one share purchase warrant (the "Warrants"), with each whole Warrant allowing the subscriber to purchase one additional share of the Company for a period of one year from the date of the closing at a price of CAD
The Units will be subject to a 4-month hold period. The private placement is subject to the approval of the TSX Venture Exchange.
ABOUT DESERT MOUNTAIN ENERGY
Desert Mountain Energy Corp. is a publicly traded resource company primarily focused on the exploration, development and production of helium, hydrogen, natural gas and condensate. The Company is focused on helium extraction from different raw gas sources in an environmental and economic manner supplying elements deemed critical to the renewable energy and high technology industries.
We seek safe harbor
"Robert Rohlfing"
Robert Rohlfing
Exec Chairman & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward looking statements and information herein include but are not limited to statements regarding the Company's anticipated performance in the future the planned exploration activities, receipt of positive results from drilling, the completion of further drilling and exploration work, and the timing and results of various activities.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the Company's exploration operations, no material adverse change in the market price of commodities, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company does not intend to, and nor does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
View original content:https://www.prnewswire.com/news-releases/desert-mountain-energy-announces-private-placement-offering-302367987.html
SOURCE Desert Mountain Energy Corp.
FAQ
What is the price per unit in Desert Mountain Energy's (DMEHF) February 2024 private placement?
How much is DMEHF aiming to raise in their February 2024 private placement?
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What are the finder's fees for DMEHF's February 2024 private placement?
