Several companies continue to invest heavily during the COVID-19 pandemic, with a leading gold royalty company, another gold miner, and a CBD oil producer posting deals this week.
1. Osisko Gold Royalties Ltd. (TSX: OR)
- Gross Proceeds: $85 million
- Sector: Mining
- Units issued: 7.73 million
- Type: Common shares (bought deal)
- Price: $11.00
- Agents: Investistissement Québec
- Use of Proceeds: Working capital
- Link to the press release
Osisko announced on Wednesday that it had agreed to an $85 million bought deal with Investistissement Québec. The company will issue the underwriter 7.73 million common shares at $11.00 each. Proceeds will be used for general working capital purposes.
Osisko Gold Royalties reported 2019 results in February, generating a net loss of $234.20 million from $392.60 million in total revenue, and $140.12 million in royalty revenue. Since then, it has been forced to withdraw its 2020 guidance due to COVID-19.
2. Seabridge Gold Ltd. (TSX: SEA)
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Gross Proceeds: $14.1 million
- Sector: Mining
- Units issued: 1.2 million
- Type: Common shares (bought deal)
- Price: $11.75
- Agents: Non-brokered
- Use of Proceeds: Tax liabilities
- Link to the press release
Also on Wednesday, Seabridge announced that it had secured a non-brokered private placement with unnamed existing investors for $14.1 million. The company will issue 1.2 million common shares for $11.75 each.
The company plans to use the proceeds to cover potential tax liabilities stemming from re-assessments by the Canadian Revenue Agency of previously issued flow-through shares.
Even amid the COVID-19 pandemic, Seabridge has continued to add new projects, announcing that it was to acquire the 3 Aces project in the Yukon Territory from Golden Predator Mining Corp. (TSX-V: GPY) for $2.25 million.
3. PharmaCielo Ltd. (TSX-V: PCLO)
- Gross Proceeds: Up to $9 million
- Sector: Mining
- Units issued: 1.2 million
- Type: Special warrants
- Price: $11.75
- Agents: Non-brokered
- Use of Proceeds: Tax liabilities
- Link to the press release
CBD oil producer PharmaCielo announced it was undertaking a private placement of special warrants for up to $9 million. The deal is already subscribed for $5 million by an unnamed investor.
Each special warrant will entitle the holder to a common share, and be automatically exercised upon the fifth day after the deal's prospectus qualification, or four months after the deal's closing date, whichever comes first.
PharmaCielo recently announced two multi-year commercial agreements for at least 36,000 kilograms of CBD isolate and CBD oil.
