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Dolly Varden Silver Announces Closing of First Tranche of $28 Million Bought-Deal Offering, With Participation by Eric Sprott
Vancouver, British Columbia--(Newsfile Corp. - September 4, 2024) - Dolly Varden Silver Corporati...
About this update from Dolly Varden Silver Corporation
[{"type":"text","content":"Dolly Varden Silver Announces Closing of First Tranche of $28 Million Bought-Deal Offering, With Participation by Eric SprottVancouver, British Columbia--(Newsfile Corp. - September 4, 2024) - Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the \"Company\" or \"Dolly Varden\") is pleased to announce the closing of the first tranche of its previously announced bought deal financing for aggregate gross proceeds to the Company of $28 million (the \"Offering\"). Pursuant to the closing of the first tranche of the Offering, Dolly Varden sold:a) 11,500,000 common shares of the Company (\"Common Shares\") at a price of $1.00 per Common Share for gross proceeds of $11,500,000, issued under a prospectus supplement dated August 21, 2024 to the Company's final short form base shelf prospectus dated April 25, 2023 (\"Prospectus Offering\"), including the full exercise of the over-allotment option under the Prospectus Offering; andb) 12,960,000 Common Shares that qualify as \"flow-through shares\" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the \"Tax Act\") (each, a \"FT Share\") at a price of $1.25 per FT Share for gross proceeds of $16,200,000, on a bought deal private placement basis (\"Private Placement Offering\").Mr. Eric Sprott, through 2176423 Ontario Ltd., participated in the Prospectus Offering.The Offering (including today's completed Prospectus Offering and Private Placement Offering) is being completed on a bought deal basis pursuant to an underwriting agreement dated August 21, 2024 (the \"Underwriting Agreement\") between the Company and a syndicate of underwriters co-led by Research Capital Corporation, as co-lead underwriter and sole bookrunner, and Haywood Securities Inc., as co-lead underwriter, and including Raymond James Ltd. (collectively, the \"Underwriters\"). Pursuant to the Underwriting Agreement, the second tranche of the Offering will consist of the further issuance by Dolly Varden of 1,440,000 FT Shares on a bought deal private placement basis at a price of $1.25 per FT Share for further gross proceeds of $1,800,000, not including any exercise of the Over-Allotment Option (as defined below). The second tranche of the Offering is expected to close in the second half of September. Completion of the Offering remains subject to the Company receiving all necessary regulatory appr...