Pulsar Helium Inc., a helium project development company, has announced that it has conditionally raised £3.875m (C$7m) before expenses through the placing of new common shares with new and existing investors.
In connection with the admission of the enlarged share capital of the Company to trading on the AIM Market of the London Stock Exchange plc (AIM), the Company is publishing an AIM admission document today.
The Company will also maintain its listings on the TSX Venture Exchange (TSX-V) in Canada and the OTCQB Venture Market in the United States.
In total, the gross funds raised by the Company through the fundraising and the £1.125 million pre-IPO cornerstone investment, first announced on August 21, 2024, amount to £5 million.
Highlights of the fundraising
- Total shares issued: The fundraising comprises a placing of 15,500,000 new common shares
- Issue Price: 25p (approximately C$0.45) per fundraising share.
- Total Raised: £3.875 million (C$7 million) before expenses.
- Market Listings: AIM: PLSR | TSXV: PLSR | OTCQB: PSRHF
Pre-IPO cornerstone investment and fee shares
As announced on September 3, 2024, the Company closed a pre-IPO cornerstone investment of £1.125m. This was achieved through a subscription for special warrants by Jerome Anthony Keen (OAK Subscriber), a principal of OAK Securities (trading as Merlin Partners LLP).
This subscription was carried out under a special warrants subscription agreement between the OAK Subscriber and the Company.
Upon receipt of conditional approval from the TSX-V, the Cornerstone Investment will convert into 4,500,000 new Common Shares at the Issue Price of 25p per share.
Additionally, 1,440,000 new Common Shares will be issued to certain advisers in part settlement of fees related to the admission (Fee Shares).
In total, the Fundraising Shares, Cornerstone Investment Conversion Shares, and Fee Shares amount to 21,440,000 new Common Shares (New Common Shares).
Warrants Issued
On Admission:
- Broker Warrants: 1,612,500 share purchase warrants (Broker Warrants) will be issued to OAK in connection with the Fundraising and the Cornerstone Investment. Each Broker Warrant entitles the holder to purchase one Common Share (Broker Warrant Share) for a period of five years at a price of 25p per share.
- Nomad Warrants: 500,000 share purchase warrants (Nomad Warrants) will be issued to Strand Hanson Limited in connection with the admission. Each Nomad Warrant entitles the holder to purchase one Common Share (Nomad Warrant Share) for two years at a price of 25p per share.
OAK was also paid a cash finder’s fee of 10% of the gross proceeds from the Cornerstone Investment and will be paid 7.5% of the gross proceeds from the fundraising.
Market capitalisation
At the Issue Price and after the issuance of the New Common Shares, Pulsar’s market capitalisation on admission will be approximately £31.6m (C$56.5m).
The Issue Price reflects a discount of approximately 14.1% to the Company’s closing share price on the TSX-V prior to the announcement of the fundraising.
Use of proceeds
The net proceeds from the fundraising, together with the Company’s existing funds, including the Cornerstone Investment, will be used primarily to accelerate the development of Pulsar’s flagship Topaz helium project in Minnesota, USA. These funds will support:
- Further drilling to deepen the Jetstream #1 well.
- Acquisition of additional seismic studies.
- Completion of a preliminary economic assessment.
- Other potential activities related to the Topaz Project.
- General working capital purposes.
The Admission Document, which provides further details on the Fundraising and Admission, will be uploaded to the Company’s website today.
Key dates for admission
Admission to AIM is expected to occur on October 18, 2024, under the ticker AIM: PLSR. The completion of the fundraising remains subject to certain conditions, including admission and the receipt of all necessary approvals, such as conditional approval from the TSX-V.
Adviser and broker roles
Strand Hanson Limited is acting as the Company’s nominated financial adviser and joint broker in connection with admission.
OAK is acting as broker for the fundraising and will also serve as joint broker from admission, having sourced the initial £1.125m Cornerstone Investment and then built a heavily oversubscribed book for the fundraising.
CEO’s comment on the fundraising and admission
Thomas Abraham-James, President and CEO of Pulsar Helium, expressed his satisfaction with the success of the fundraising and the upcoming AIM admission, stating: “We are extremely pleased with the outcome of the fundraising and our admission to AIM, which represents a signicant milestone for the Company.
“The fundraising itself was oversubscribed by more than 50%, reflecting the strong support and confidence from new and existing shareholders. As the funds raised are sufficient for our near-term work programmes, we decided not to accept the additional funding offered as we felt we didn’t want to incur any further dilution ahead of what we expect to be an exciting period for the Company.
“Additionally, this result is a testament to the potential of Pulsar Helium and its Topaz Project in particular. The Topaz Project is a primary helium discovery in a new helium state, which owed concentrations regarded as very high by global standards and far exceeding the generally accepted economic threshold for viability. The funds raised during this process will be instrumental in enabling the Company to accelerate its exploration and development efforts at Topaz, delivering further value to stakeholders.
“Helium, whilst not always well-known, is vital to multiple technology-driven industries, playing an important role in semiconductor manufacturing, high-quality ber-optic cable production, and MRI scanners. It also improves data storage efficiency in hard drives and is used by the space industry to launch rockets. We look forward to updating shareholders on the continued progress of the Company, its Topaz Project and its Tunu Project, located in Greenland, over the coming weeks and months.”
This announcement signifies an important milestone for Pulsar Helium as it advances its Topaz Project and positions itself to capitalise on the growing demand for helium.
