CALGARY,
AB, Sept. 3, 2024 /CNW/ - Avanti Helium
Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company")
is pleased to announce it has closed the first tranche (the "First
Tranche") of its previously announced non-brokered private
placement (the "Offering") of units of the Company ("Units") by
issuing 1,200,000 Units at a price of $0.25 per Unit for aggregate gross proceeds of
$300,000.
Each Unit is comprised of one (1) common share of the Company (a
"Share") and one (1) Share purchase warrant (each a "Unit
Warrant"), with each Unit Warrant entitling the holder to purchase
one (1) additional Share at a price of $0.30 per Share for a period of one (1) year from
the date of issuance.
Chris Bakker, the Chief Executive
Officer and a director of the Company ("Bakker") subscribed for and
will subscribe for, directly and indirectly, an aggregate of
2,000,000 Units, of which 1,200,000 Units were subscribed for and
purchased in the First Tranche, and such participation is and would
be considered to be a "related party transaction" as defined under
Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The Company
relied on and intends to continue to rely on exemptions from the
formal valuation and minority shareholder approval requirements
provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis
that the participation in the Offering by Bakker will not exceed
25% of the fair market value of the Company's market
capitalization.
The proceeds of the Offering will be used for ongoing costs
associated with the Company's projects and general working capital
requirements.
All securities issued under the Offering, including securities
issuable on the exercise thereof, will be subject to a hold period
expiring four (4) months and one (1) day from the date of issuance,
in accordance with applicable securities laws and the policies of
the TSX Venture Exchange (the "Exchange").
The Offering remains subject to the acceptance of the Exchange.
The Company expects to close the remaining tranche(s) of the
Offering shortly.
Investment by Chris
Bakker
As described above, Bakker, of 1810 - 840 7th Avenue SW,
Calgary, AB T2P 3G2,
Canada, acquired 1,200,000 Units,
comprising 1,200,000 Shares and 1,200,000 Unit Warrants, for
consideration of $300,000 pursuant to
the First Tranche.
Immediately prior to the closing of the First Tranche, Bakker
beneficially owned, directly or indirectly, 7,041,980 Shares,
2,481,250 Share purchase warrants ("Warrants") and 712,000 stock
options ("Options") of the Company, which represented approximately
7.44% of the issued and outstanding Shares on a non-diluted basis
and approximately 10.82% of the issued and outstanding Shares on a
partially diluted basis, which assumes the exercise of the
2,481,250 Warrants and 712,000 Options.
Immediately following the closing of the First Tranche, Bakker
beneficially owns, directly or indirectly, 8,241,980 Shares,
3,681,250 Warrants and 712,000 Options, representing approximately
8.60% of the issued and outstanding Shares on a non-diluted basis
and approximately 13.19% of the issued and outstanding Shares on a
partially diluted basis, which assumes the exercise of the
3,681,250 Warrants and 712,000 Options.
The securities of the Company held by Bakker are held for
investment purposes. Bakker has a long-term view of the investment
and may acquire additional securities of the Company either on the
open market, through private acquisitions or as compensation or
sell the securities on the open market or through private
dispositions in the future depending on market conditions, general
economic and industry conditions, the Company's business and
financial condition, reformulation of plans and/or other relevant
factors.
A copy of Bakker's early warning report will appear on the
Company's profile on SEDAR+ and may also be requested by mail at
Avanti Helium Corp., 1810 - 840 7th Avenue SW, Calgary, Alberta, T2P 3G2, Attention:
Chris Bakker or phone at (403)
384-0401.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The securities being offered have not been,
nor will they be, registered under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") and may not be
offered or sold in the United
States or to, or for the account or benefit of, U.S. persons
(as defined in Regulation S under the U.S. Securities Act) absent
registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable state
securities laws.
About Avanti Helium Corp.
Avanti 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 helium trapped in
structures 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.avantihelium.com.
Forward-Looking Statements
The information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. The Company cautions that all
forward-looking statements are inherently uncertain and that actual
performance may be affected by a number of material factors, many
of which are beyond the Company's control. Such factors include,
among other things: statements relating to the expected timing for
the development of the helium recovery plant and timing estimates
with respect to initial production therefrom, statements relating
to the expected benefits to Avanti from the midstream agreement and
liquefaction tolling agreement, statements relating to obtaining
financing to fund associated infrastructure work for the plant,
risks associated with helium exploration, development, production,
marketing and transportation, volatility in helium prices, risks
relating to the Company's ability to access sufficient capital from
production and external sources, risks and uncertainties relating
to the Company's limited operating history and the need to comply
with environmental and governmental regulations. Accordingly,
actual and future events, conditions and results may differ
materially from the estimates, beliefs, intentions and expectations
expressed or implied in the forward-looking information. Except as
required under applicable securities legislation, the Company
undertakes no obligation to publicly update or revise
forward-looking information. Please see the public filings of
the Company at www.sedarplus.ca for further
information and risks applicable to the Company.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Avanti Helium Corp.