Canadian helium exploration company Helium Evolution Incorporated (TSXV: HEVI, OTCQB: HEEVF) has completed a private placement of US$25 million, the company said on Sunday.
The offering consisted of 166,666,667 units priced at US$0.15 each, with each unit comprising one common share and one warrant. The warrants allow holders to purchase additional common shares at US$0.30 for a three-year period following the closing date. An acceleration clause is included, triggering if the volume-weighted average price of the common shares reaches or exceeds US$0.50 for 30 consecutive trading days.
International investors subscribed to 95% of the total, contributing US$23.7 million. Three major investors—Henry Maxey, Tough Investments Limited, and Alan Howard—each acquired approximately 15% of the company’s issued and outstanding common shares on a non-diluted basis. Maxey and Tough Investments Limited each purchased 49,310,000 common shares and an equal number of warrants for US$7,396,500, while Howard, a new investor, acquired 49,310,000 units for the same amount.
Insiders connected to the company participated to the tune of US$230,000. As part of the transaction, Helium Evolution entered into pro-rata participation and board nomination rights agreements with Maxey, Howard, and Tough Investments Limited, enabling these investors to maintain their ownership stake at or above 10% of the common shares.
The company paid US$1,184,475 in cash fees to Auctus Advisors LLP, which also received 6,317,200 brokerage warrants tied to certain investor subscriptions. The net proceeds will be directed toward exploration and development of helium assets in southern Saskatchewan, drilling and infrastructure initiatives, and general corporate purposes.
The securities are subject to a four-month hold period under applicable securities laws.
