/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, BC, March 15, 2022 /CNW/ - Avanti Energy Inc.
(TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company")
is pleased to announce that it has successfully closed its
previously announced bought deal public offering (the "Offering")
of 8,414,550 units of the Company (the "Units") at a price of
$1.23 per Unit for aggregate gross
proceeds of $10,349,896.50 (the
"Offering"). This amount includes gross proceeds from the
full exercise of the over-allotment option granted to the
Underwriters (as defined below) to purchase an additional 1,097,550
Units from the Company.
Avanti Chief Executive Officer and Director, Chris Bakker states, "We thank the syndicate
of underwriters, new investors and our existing shareholders for
their support via this oversubscribed financing. The strong
demand for this public offering is a testament to our drilling
success at the Greater Knappen Project. With a strong balance
sheet, we plan to be very active in drilling our prospective helium
properties."
The Offering was co-led by Cormark Securities Inc. and Beacon
Securities Limited (collectively, the "Underwriters").
Each Unit consists of one common share of the Company (each a
"Common Share") and one-half of one Common Share purchase warrant
(each whole warrant, a "Warrant"). Each Warrant will be exercisable
to acquire one Common Share (a "Warrant Share") until March 15, 2024 at an exercise price of
$1.60 per Warrant Share.
The Underwriters received a cash commission equal to 7% of the
gross proceeds realized from the Offering. The Company also granted
the Underwriters compensation options exercisable to purchase
an aggregate of 589,018 Units (each, a Compensation Option Unit")
at an exercise price of $1.23 per
Compensation Option Unit until March 15,
2024.
The Company intends to use the net proceeds of the Offering to
fund exploration drilling on the Company's properties and for
general corporate purposes.
The Units were issued pursuant to a short form prospectus dated
March 10, 2022 filed with the
securities regulatory authorities in all provinces of Canada except Quebec (the "Prospectus"). A copy of the
Prospectus is available under the Company's profile on SEDAR at
www.sedar.com.
About Avanti Energy Inc.
Avanti Energy is focused on the exploration, development and
production of helium across western Canada and the
United States. Avanti's professional oil and gas exploration
and production team is actively targeting untapped potential helium
reserves to help meet the increasing global demand for an
irreplaceable and scarce element critical to advanced technology,
medical and space exploration industries. For more information,
please go to the Company's website at www.avantienergy.com.
This news release does not constitute an offer to sell, or
the solicitation of an offer to buy securities in any
jurisdiction in which such offer or solicitation would be unlawful
prior to registration or qualification under the securities
laws of such jurisdiction.
The securities described herein have not been, and will not be,
registered under the United States Securities Act of 1933, as
amended (the "Securities Act"), or the securities laws of any state
of the United States, and may not
be offered or sold in the United
States or to, or for the account or benefit of, any U.S.
Person (as defined in Regulation S of the Securities Act) or a
person in the United States,
unless an exemption from such registration requirements is
available.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This release includes certain statements that may be deemed
to be "forward-looking statements". All statements in this release,
other than statements of historical facts, that address events or
developments that management of the Company expects, are
forward-looking statements, including statements as to the timing
for closing of the Offering and the use of proceeds of the
Offering. Although management believes the expectations expressed
in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ
materially from those in the forward-looking statements. The
Company undertakes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors, should change. Factors that could cause actual results to
differ materially from those in forward-looking statements, include
market prices, exploration and development successes, continued
availability of capital and financing, and general economic, market
or business conditions. Please see the public filings of the
Company at www.sedar.com for further information.
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this news
release.
SOURCE Avanti Energy Inc.