Hertz Energy launches $1.13M private placement to fund exploration
What's the deal? Hertz EnergyDealroom has a profile for this one. Try Dealroom →, a Vancouver-based exploration company listed on the CSE, OTCQB, and Frankfurt exchanges, has launched a non-brokered private placement to raise up to US$1.18M. The offering combines two tranches of charity flow-through units with a tranche of standard units.
How it breaks down: The company is offering up to 1,664,150 Lake George flow-through units at US$0.19 each for roughly US$323.4K, and up to 1,665,600 Craig flow-through units at US$0.18 each for up to US$305.4K. A third tranche of up to 4,166,666 standard units priced at US$0.13 each targets about US$550K.
The fine print: Each unit carries a warrant to buy one common share at US$0.22 for 24 months after closing. Hertz can accelerate the warrant expiry if its shares close at or above US$0.37 for 24 consecutive trading days.
Why the structure? The flow-through units are being offered through a third-party charitable arrangement, which lets subscribers donate their flow-through shares to a registered charity. Hertz said it is not a party to that arrangement and makes no representation on its tax consequences.
The signal: For small-cap resource explorers, flow-through financings remain a go-to tool to fund drilling while passing tax benefits to investors. The modest, quick raise points to a company topping up its treasury to keep projects moving rather than making a large strategic bet.
Read more: wallstreet-online.de
Image credit: James St. John
