GTI Energy Ltd (ASX:GTR, OTC:GTRIF) has entered into an At-the-Market (ATM) Financing Deed with 8 Equity Pty Ltd which provides the company with standby equity capital of up to $2 million over a three-year term.
This ATM facility provides flexibility for the company to strengthen its balance sheet, as it continues its strategy to advance its ISR Uranium projects in Wyoming, USA.
The facility will also see GTI retain full control over all aspects whether and when it can utilise the facility, having sole discretion over its use.
“Flexible option”
GTI director Bruce Lane said: “The ATM facility provides GTI with an additional flexible option to help finance exploration and development activities at our Wyoming ISR uranium projects.”
During the term of the ATM, GTI may issue one or more finance requests specifying:
- the amount raised and/or the number of shares it would like to transact;
- the floor price (minimum price) it wishes to raise funds at; and
- the period over which it wishes the request to be filled.
Once the financier, 8 Equity, has received a finance request, it will seek to transact the shares on market in accordance with the finance request, but not more than 15% of the daily sales volume of shares traded on ASX during any given day (without the prior consent of GTI).
ATM details
Other features of the ATM are:
- The financier will provide GTI with proceeds from the Share sale (less costs) post the sales period.
- GTI has the ability to cancel a finance request at any time.
- GTI plans to issue 97,192,933 shares to the financier at nil consideration (advance subscription shares) as security for the obligations owed to the financier under the facility pursuant to ASX Listing Rule 7.1.
- If any advanced subscription shares remain on issue at the end of the three-year facility term, they will either be cancelled for nil consideration (subject to shareholder approval) or sold for GTI’s benefit on market (subject to a stipulated a floor price) or retained by the financier at a price to be agreed by the parties.