Orbitealuminae (Press Release)
Orbite announces closing of $16 million financing
Edited by : AL CIRCLE
2 min read
Orbite Aluminae Inc. announces that it has completed its previously disclosed public offering of units in the maximum contemplated amount of $16M.
The Offering is supplemented by the previously announced binding subscription commitment for $40 million in additional units from Crede Capital Group, LLC, a U.S. based institutional investor, such additional financing to be completed in upcoming successive tranches by way of private placement (subject to regulatory and shareholder approval). Funds raised today combined with those under the subscription commitment total $56 million.
Each Unit consists of $1,000 principal amount of 7.5% unsecured unsubordinated debentures and 875 share purchase warrants, such principal amount of Debentures is convertible into shares at a price of $0.40 per share and each Warrant is exercisable into one share of the Corporation at a price of $0.48. Euro Pacific Canada Inc. acted as placement agent of the Offering and will receive a commission of 6% of gross proceeds raised in addition to 2,400,000 broker warrants, each such warrant is convertible into one class A share of the Corporation at a price of $0.48.
"We are now very well positioned to execute on our short and near term business priorities, which are the finalization of our HPA facility and the development of our Red Mud Remediation projects with our partner Veolia. The construction and optimization efforts at our HPA facility begin today" said Glenn Kelly, Orbite's Chief Operating Officer. "We also remain focused on other financing initiatives, including our discussions with the Government of Quebec which continue to progress well."
The net proceeds from the Offering will be used to complete the Corporation's high-purity alumina plant located in Cap-Chat, Quebec, and for general corporate and working capital purposes.
The Offering is supplemented by the previously announced binding subscription commitment for $40 million in additional units from Crede Capital Group, LLC, a U.S. based institutional investor, such additional financing to be completed in upcoming successive tranches by way of private placement (subject to regulatory and shareholder approval). Funds raised today combined with those under the subscription commitment total $56 million.
Each Unit consists of $1,000 principal amount of 7.5% unsecured unsubordinated debentures and 875 share purchase warrants, such principal amount of Debentures is convertible into shares at a price of $0.40 per share and each Warrant is exercisable into one share of the Corporation at a price of $0.48. Euro Pacific Canada Inc. acted as placement agent of the Offering and will receive a commission of 6% of gross proceeds raised in addition to 2,400,000 broker warrants, each such warrant is convertible into one class A share of the Corporation at a price of $0.48.
"We are now very well positioned to execute on our short and near term business priorities, which are the finalization of our HPA facility and the development of our Red Mud Remediation projects with our partner Veolia. The construction and optimization efforts at our HPA facility begin today" said Glenn Kelly, Orbite's Chief Operating Officer. "We also remain focused on other financing initiatives, including our discussions with the Government of Quebec which continue to progress well."
The net proceeds from the Offering will be used to complete the Corporation's high-purity alumina plant located in Cap-Chat, Quebec, and for general corporate and working capital purposes.
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