Deal funds pre-development of the Bear Lodge Project, working capital
By Devika Patel
Knoxville, Tenn., April 24 – Rare Element Resources Ltd. said it negotiated a $3.4 million registered direct offering of units with a $4 million greenshoe. H.C. Wainwright & Co., LLC is the agent.
The company will sell 5,230,770 units of one common share and a half-share warrant at $0.65 per unit. The price per unit is about a 15% discount to the five-day volume weighted average price of the stock as of April 23, the company said in a press release.
The whole warrants are exercisable at $0.85 for three years. The strike price reflects a 7.6% premium to the April 23 closing share price of $0.79.
Settlement is expected April 29.
Proceeds will be used for pre-development of the Bear Lodge Rare Earth Element Project, working capital and other 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: | $3.4 million
|
| Greenshoe: | $4 million
|
| Units: | 5,230,770
|
| Price: | $0.65
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.85
|
| Agent: | H.C. Wainwright & Co., LLC
|
| Pricing date: | April 24
|
| Settlement date: | April 29
|
| Stock symbol: | NYSE: REE
|
| Stock price: | $0.79 at close April 23
|
| Market capitalization: | $36.14 million
|
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