Nations Royalty closes $15-million private placement

Executive Summary

• Nations Royalty Corp. has closed its previously announced bought deal private placement, raising gross proceeds of C$15 million, inclusive of the full exercise of the overallotment option.
• The company issued 9,375,000 units at a price of $1.60 per unit, with each unit comprising one common share and one-half of one common share purchase warrant.
• The offering was underwritten by Red Cloud Securities Inc. and Canaccord Genuity Corp., with the closing subject to final approval by the TSX Venture Exchange.

Key Details

• Gross Proceeds: C$15 million.
• Units Sold: 9,375,000 units.
• Price Per Unit: $1.60.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms (Investors): Each whole warrant entitles the holder to purchase one common share at an exercise price of $2.25.
• Warrant Expiration (Investors): January 30, 2029.
• Underwriters: Red Cloud Securities Inc. (co-lead underwriter and sole bookrunner) and Canaccord Genuity Corp.
• Underwriter Compensation:
  • Aggregate cash fees: $873,600.
  • Non-transferable common share purchase warrants: 546,000.
• Broker Warrant Terms: Each broker warrant is exercisable into a warrant share at the offering price ($1.60) at any time on or before January 30, 2029.
• Regulatory Exemption: Issued to Canadian purchasers pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106, as amended by Coordinated Blanket Order 45-935.
• Tradability: Units sold to purchasers resident in Canada are immediately freely tradable.
• Regulatory Status: Closing remains subject to final approval of the TSX Venture Exchange.