Investment by Chris
Bakker
CALGARY, AB, April 17, 2024 /CNW/ - Avanti Helium
Corp. (TSXV: AVN) (OTC: ARGYF) ("Avanti" or the "Company")
is pleased to announce that it has closed the second and final
tranche (the "Second Tranche") of its non-brokered private
placement (the "Offering") of units (the "Units"). The Company
issued 1,000,000 Units at a price of $0.40 per Unit for aggregate gross proceeds of
$400,000 under the Second Tranche.
Together with the first tranche of the Offering, the Company issued
an aggregate of 2,692,269 Units for aggregate gross proceeds of
$1,076,908 under the Offering.
Each Unit issued under the Second Tranche is comprised of one
(1) common share of the Company (a "Share") and one (1) Share
purchase warrant (a "Unit Warrant"), with each Unit Warrant
exercisable to acquire one (1) additional Share (a "Unit Warrant
Share") at an exercise price of $0.60
per Unit Warrant Share until April 16,
2025.
In connection with the Second Tranche, the Company paid and
issued an aggregate of $6,000 and
15,000 Share purchase warrants ("Finder's Warrants") in finder's
fees. Each Finder's Warrant is exercisable to acquire one (1) Share
(a "Finder's Warrant Share") at an exercise price of $0.60 per Finder's Warrant Share until
April 16, 2025.
All securities issued under and in connection with the Second
Tranche are subject to a statutory hold period expiring on
August 17, 2024, in accordance with
applicable securities laws and the policies of the TSX Venture
Exchange.
Chris Bakker ("Bakker"), the
Chief Executive Officer and a director of the Company, purchased
750,000 Units for consideration of $300,000 pursuant to the Second Tranche.
Participation by Bakker in the Second Tranche is considered a
"related party transaction" pursuant to Multilateral Instrument
61-101 – Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Company is exempt from the
requirements to obtain a formal valuation and minority shareholder
approval in connection with Bakker's participation in the Second
Tranche in reliance of sections 5.5(a) and 5.7(a) of MI 61-101,
respectively, on the basis that participation in the Second Tranche
by Bakker did not exceed 25% of the fair market value of the
Company's market capitalization.
The net proceeds of the Offering will be used for various work
related to the Company's Helium Recovery Plant located on the
Sweetgrass Pool in Montana and for
general working capital.
Investment by Chris Bakker
As described above, Bakker, of 1810 - 840 7th Avenue SW,
Calgary, AB T2P 3G2,
Canada, acquired 750,000 Units,
comprising 750,000 Shares and 750,000 Unit Warrants, for
consideration of $300,000 pursuant to
the Second Tranche.
Immediately prior to the closing of the Second Tranche, Bakker
beneficially owned, directly or indirectly, 6,291,980 Shares,
1,731,250 Share purchase warrants ("Warrants") and 712,000 stock
options ("Options") of the Company, which represented approximately
6.8% of the issued and outstanding Shares on a non-diluted basis
and approximately 9.2% of the issued and outstanding Shares on a
partially diluted basis, which assumes the exercise of the
1,731,250 Warrants and 712,000 Options.
Immediately following the closing of the Second Tranche, Bakker
beneficially owns, directly or indirectly, 7,041,980 Shares,
2,481,250 Warrants and 712,000 Options, representing approximately
7.6% of the issued and outstanding Shares on a non-diluted basis
and approximately 10.6% 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.
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.