NioCorp Developments Ltd (NB) shares experienced a sharp decline on Monday morning, falling by 8.18% to $1.46. This drop follows the company’s announcement of both a public and private offering of common shares, aimed at bolstering its financial resources.
The public offering will involve the issuance of 1,592,356 common shares, along with Series A and Series B warrants, priced at $1.57 per unit. This offering is projected to generate approximately $2.5 million in gross proceeds. Concurrently, the private offering will see the issuance of 2,199,888 common shares with similar warrants, with the goal of raising around $3.5 million. Importantly, the Series A and Series B warrants carry distinct exercise prices and expiration terms.
Maxim Group LLC has been appointed as the managing underwriter for the public offering. NioCorp intends to utilize the funds raised from these offerings for a variety of purposes, including advancing its crucial Elk Creek Project, a critical minerals project located in Nebraska. Additionally, the funds will be used to repay a $2 million credit facility.
The offerings are anticipated to close on November 5 and November 11, respectively, subject to the fulfillment of customary closing conditions.
NioCorp’s stock performance has been volatile in recent months, with its 52-week high reaching $4.39 and its 52-week low settling at $1.58. The current decline suggests investor sentiment is cautious, likely due to the dilution associated with the issuance of new shares. The market will be closely watching the closing of these offerings and the subsequent impact on NioCorp’s stock price and the company’s overall financial position.
