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Royal Helium Announces Upsizing of Previously Announced LIFE Offering of Units to $5,175,000

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Royal Helium Announces Upsizing of Previously Announced LIFE Offering of Units to $5,175,000

Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) is pleased to announce the upsizing of its previously announced overnight marketed offering of units (the "Offering") to $5,175,000 in aggregate gross proceeds. The Offering will consist of units of the company, with each unit priced at $0.24. The Offering will close in two tranches, with the first tranche being $4,500,000 and the second tranche being $675,000. Research Capital Corporation will act as the lead underwriter and sole bookrunner for the Offering, with Cormark Securities Inc. and Eight Capital also participating as underwriters.

Use of Proceeds

The net proceeds from the Offering will be allocated to multi-well completions at Val Marie, Ogema, and Steveville, as well as for design and engineering of offtake gas facilities. Additionally, the funds will be used for working capital and general corporate purposes.

Closing and Conditions

The first tranche of the Offering is expected to close on or about November 14, 2023, with the second tranche anticipated to close on or about December 14, 2023. The closing is subject to certain conditions, including regulatory and other approvals, such as the approval of the TSX Venture Exchange. Royal Helium Ltd. is an exploration, production, and infrastructure company focused on the development and production of helium and associated gases. With over 1,000,000 acres of prospective helium permits and leases across southern Saskatchewan and southeastern Alberta, the company is well-positioned to be a leading North American producer of this valuable commodity. Royal Helium's extraction process, carried primarily with nitrogen, has a low greenhouse gas footprint compared to other jurisdictions relying on natural gas production for helium extraction. In conclusion, Royal Helium's upsized Offering reflects the company's commitment to expanding its operations and capitalizing on the growing demand for helium. The funds raised will support the development of key projects and further solidify Royal Helium's position in the market.

A "Hot Take" on Royal Helium's Upsized Offering

Royal Helium Ltd.'s recent announcement of the upsizing of its overnight marketed offering of units to $5,175,000 presents a significant development for new businesses in the energy sector. This move not only demonstrates the company's growth trajectory but also highlights the increasing demand for helium, a valuable commodity in various industries.

Implications for New Businesses

New businesses, particularly those in the energy and exploration sectors, can glean important insights from Royal Helium's strategy. The upsized offering signifies the company's commitment to expanding its operations, a move that is likely to solidify its market position. This strategy can serve as a blueprint for new businesses seeking to scale their operations and capitalize on market opportunities.
Lessons from Royal Helium's Strategy
The allocation of the net proceeds from the offering also offers a lesson in strategic investment. By directing funds towards multi-well completions and the design and engineering of offtake gas facilities, Royal Helium is investing in its core operations. This focus on bolstering its operational capacity can guide new businesses in making strategic investment decisions. In conclusion, Royal Helium's upsized offering offers valuable insights for new businesses. By focusing on expansion and strategic investment, businesses can position themselves for growth and success in the competitive energy market.
Story First Published at: https://financialpost.com/globe-newswire/royal-helium-announces-upsizing-of-previously-announced-life-offering-of-units-to-5175000
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