Source: Business Television
  • Desert Mountain Energy (DME) announced a $20 million public offering of units
  • It will issue approximately 10.3 million of its units at a price of $1.95 each
  • DME has granted the involved agent company an overallotment option
  • DME will use the proceeds for ongoing drilling and exploration work, infrastructure for the McCauley facility, to buy a second helium facility, and corporate purposes
  • Desert Mountain Energy (DME) is down 18.64 per cent, trading at $1.92 per share as of 11:10 a.m. EST

Desert Mountain Energy (DME) announced a $20 million public offering of units.

The company will issue approximately 10.3 million units for $1.95 per unit. A unit will be made up of one common share and one common share purchase warrant of DME. Each warrant will allow the holder to acquire an additional common share for $2.70 for two years after the offering has closed. The warrants are also subject to an acceleration option.

Additionally, DME has granted the involved agent company an overallotment option. The option allows the agent to sell units equal to 15 per cent of what gets sold under the offering for the same issue price.

Continued support for the McCauley facility

DME will use the net proceeds of the offering for ongoing drilling and exploration work, infrastructure for the McCauley facility, buying a second helium facility, as well as other corporate purposes. The offering is expected to close by March 23, subject to regulatory approvals. 

DME is a publicly traded energy company focused on the exploration, development, and production of helium, hydrogen, and other noble gases in the U.S. southwest. The company looks for elements considered to be critical for renewable energy and technology industries.

Desert Mountain Energy (DME) is down 18.64 per cent, trading at $1.92 per share as of 11:10 a.m. EST.


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