This weeks' financing roundup contains another big deal from an ailing cannabis player, a bought deal for a silver explorer sitting on a promising deposit, and an up-and-coming gold miner. Read on for all the details.
1. Hexo Corp. (TSX: HEXO)
- Gross Proceeds: $57.5 million (oversubscribed)
- Sector: Cannabis
- Units issued: 63.94 million
- Type: Special units
- Price: 90 cents
- Warrants: Full, $1.05, 5 years
- Agents: Canaccord Genuity Corp., Cannacord Genuity LLC
- Use of Proceeds: Working capital
- Link to the press release
Canadian cannabis company Hexo Corp. (TSX: HEXO) announced a $50 million overnight marketed offering on Tuesday and closed the deal oversubscribed for a total of $57.5 million on Thursday.
The company issued 63.94 million units at 90 cents each, with each unit comprised of a common share and a full warrant exercisable at $1.05 for 5 years. Canaccord Genuity Corp. and Cannacord Genuity LLC led the deal along with Alliance Global Partners AltaCorp Capital, and BMO Nesbitt Burns Inc.
Shares of Hexo initially dropped after the company announced the offering, but are now up 15 cents to 88 cents per share. Read our article about the deal here.
2. New Pacific Metals Corp. (TSX-V: NUAG)
- Gross Proceeds: $25 million (bought deal)
- Sector: Silver mining
- Units issued: 4.24 million
- Type: Common shares
- Price: $5.90
- Warrants: None
- Agents: BMO Capital Markets
- Use of Proceeds: Ongoing exploration
- Link to the press release
Silver explorer New Pacific Metals Corp. (TSX-V: NUAG) announced a $25 million deal with BMO Capital Markets as the sole underwriter on Tuesday to fund continued exploration at its flagship Silver Sand project in Bolivia.
The company plans to issue approximately 4.24 million common shares at $5.90 each, along with an over-allotment option that enables BMO to purchase up to an additional 15% of the offering for 30 days after the deal closes, expected on June 9. In connection with the offering, New Pacific has also sold 8 million common shares to BMO, which it will resell to the public.
New Pacific acquired the Silver Sand project in 2017. In April, it released the inaugural resource estimate for the deposit, estimating a measured and indicated 35.39 megatonnes or ore grading 137 g/t Ag for a total of 155.86 million ounces, and an inferred 9.84 million megatonnes grading 112 g/t Ag for a total of 35.55 million ounces. The company calls it "one of the more significant new global primary silver discoveries in the last decade."
Since announcing the financing with BMO, shares of New Pacific have dropped $1.24 to $5.34 per share.
3. Sabina Gold & Silver Corp. (TSX: SBB)
- Gross Proceeds: $49 million (bought deal)
- Sector: Mining
- Units issued: 12.5 million, 2.1 million, 5.2 million, 1.6 million
- Type: Common shares, flow-through shares, charity flow-through shares, super charity flow-through shares
- Price: $2.00, $2.40, $2.68, $2.90, respectively
- Warrants: None
- Agents: BMO Capital Markets, RBC Capital Markets
- Use of Proceeds: Flow-through expenses and project development
- Link to the press release
Sabina Gold & Silver Corp. (TSX: SBB) announced a four-pronged bought deal with a syndicate of underwriters led by BCMO Capital Markets and RBC Capital Markets on Tuesday, raising a total of $49 million.
The company plans to issue 12.5 million common shares at $2.00 each, 2.1 million flow-through shares at $2.40 each, 5.2 million charity flow-through shares at $2.68 each, and 1.6 million "super charity" flow-through shares at $2.90 each. Sabina has also granted the underwriters an over-allotment option to purchase up to an additional 15% of the offering for 30 days after the deal closes, expected on June 3.
The company says it plans to use proceeds to incur flow-through expenses and to advance its Back River Gold Project in Nunavit, Canada. It originally planned to drill 6,500 metres at the project in the spring but was forced to defer drilling due to COVID-19 concerns.
Shares of Sabina hit a 52-week low in mid-March in tandem with a drop in the price of gold, but since then have risen alongside gold. However, since announcing the financing, its shares have dropped 41 cents to $1.81 per share.
