Deal sells units of one share and a half-share warrant at $2.988 each
By Devika Patel
Knoxville, Tenn., Sept. 25 - Rare Element Resources Ltd. said it arranged an $8 million registered direct offering of units with a $4 million greenshoe. H.C. Wainwright & Co., LLC is the agent.
The company will sell 2,677,376 units of one common share and a half-share warrant at $2.988 per unit.
The whole warrants are exercisable at $4.15 for three years. The strike price reflects a 25% premium to the Sept. 24 closing share price of $3.32.
Settlement is expected Sept. 27.
Proceeds will be used for engineering and metallurgical work, permitting on the Bear Lodge Project and general corporate purposes.
Rare Element is a resource exploration company based in Lakewood, Colo.
| Issuer: | Rare Element Resources Ltd.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | $8 million
|
| Greenshoe: | $4 million
|
| Units: | 2,677,376
|
| Price: | $2.988
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $4.15
|
| Agents: | H.C. Wainwright & Co., LLC
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 27
|
| Stock symbol: | NYSE: REE
|
| Stock price: | $3.32 at close Sept. 24
|
| Market capitalization: | $133.05 million
|
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