NioCorp Completes $8 Million Financing Through Unsecured Notes

NioCorp Developments Ltd. announced the closure of a private placement, raising $8 million through unsecured notes. Starting June 1, 2024, the company is obliged to repay portions of the outstanding notes balance, adding a payment premium and any accrued interest. Exceptions are made if specified equity conditions are met, allowing for payment suspension.

Additionally, purchasers received warrants for buying up to 615,385 common shares at a $3.25 exercise price. The financing involved specific purchasers, including investment fund Yorkville, aligning with a securities purchase agreement. NioCorp aims to utilize these funds for general capital, including payable accounts and operation costs.

The securities issuance complied with regulatory exemptions from the U.S. Securities Act registration requirements, facilitated through private offerings. Note holders have conversion rights, within set limits, to common shares at a $2.75 price per share.

NioCorp's obligations include an interest-free note repayment by the end of 2024, escalated to 18% in event default scenarios. The agreement includes provisions for payment adjustments and equity conversion subject to trading performance and regulatory conditions.

This financing is part of NioCorp's strategy to bolster its working capital and support its operations without offering public securities in the U.S. market. With expectations tethered to NioCorp’s resource development projects, this move is pivotal for the company’s financial strategy and operational framework.