Heliostar Metals (HSTR.V) successfully closed a financing priced at C$0.37 per unit with each unit consisting of one common share and half a warrant with each full warrant allowing the warrant holder to acquire an additional share of Heliostar at C$0.50 in the first six months and C$0.70 in the subsequent twelve months.
It is great to see the company was able to raise more funds than the C$5M it initially announced as the share price has definitely reacted to getting close to the end of the lock-up period of the C$0.23 round, which was completed in March. As explained in our initial report on Heliostar, although a lot of those shares were placed in strong hands, it was inevitable some would hit the market as Heliostar is pretty much the only gold exploration company whose share price is actually up in the past few months. The official expiry date of the 4 month and 1 day hold period is this week so we will likely continue to see elevated trading volumes and it will be particularly interesting to see how well the market may absorb those shares.
In any case, CEO Funk made the right call by raising money before the 92.7M shares came out of lock-up and the C$7M cash inflow will for sure make life more comfortable.
Disclosure: The author has no position in Heliostar Metals. Heliostar is a sponsor of the website. Please read our disclaimer.
