NioCorp Announces $200 Million Shelf Registration Statement
NioCorp Developments, trading under the symbol NB on NASDAQ, announced that the SEC has approved a $200 million shelf registration statement on Form S-3. This registration allows NioCorp to offer and sell up to $200 million in securities, including common stock, in the U.S. as needed. The company plans to detail the terms and intended use of proceeds for each offering via a separate prospectus supplement. CEO Mark A. Smith emphasized that this approval provides NioCorp with enhanced flexibility to access capital markets efficiently. The securities will only be sold through a prospectus and accompanying prospectus supplement, available on the SEC's website.
- SEC approval of $200 million shelf registration statement provides financial flexibility.
- Ability to offer and sell up to $200 million in securities as needed.
- Potential shareholder dilution from future stock offerings.
Insights
The $200 million shelf registration statement announced by NioCorp provides the company with a significant degree of financial flexibility. A shelf registration allows a company to register securities for sale and then sell them over a period of time, rather than all at once. This can be particularly advantageous in raising capital in a timely manner, when market conditions are favorable.
This move signals that NioCorp is positioning itself to potentially take advantage of future opportunities or address upcoming financial needs without the delays or costs associated with filing separate registration statements for each offering. It also allows the company to react quickly to changing market conditions, which can be an essential strategy in a volatile market environment.
It's important to note, however, that while the registration statement itself does not necessarily indicate an imminent capital raise, it does highlight the company's intention to keep its options open. This kind of flexibility can be reassuring to investors who may be concerned about the company's ability to access funds when needed.
For stakeholders, this announcement could be seen as a positive signal of the company's proactive financial planning, though it is also critical to monitor how and when these securities are actually offered and utilized. Investors would want to see that any funds raised are used effectively to generate growth and returns, rather than merely to cover operating costs or debt.
From a market perspective, the ability to raise up to
This shelf registration also allows NioCorp to align more closely with investor expectations, managing its capital structure more dynamically. Investors might view this as a sign that the company is preparing for significant future ventures or seeking to strengthen its balance sheet.
However, the announcement does not specify the immediate intentions for the use of proceeds, which could lead to some ambiguity in investor sentiment. Potential dilution of existing shares is another factor investors may need to consider, depending on the type of securities issued and the timing of their issuance.
The market will need to see clear and strategic use of any funds raised to maintain confidence in the company's growth trajectory. This shelf registration, while offering financial agility, must be balanced with transparent communication and strategic planning to truly benefit shareholders in the long run.
CENTENNIAL, CO / ACCESSWIRE / June 28, 2024 / NioCorp Developments Ltd. (NASDAQ:NB) ("NioCorp" or the "Company"), is pleased to announce that the U.S. Securities and Exchange Commission (the "SEC") has made effective a
The Shelf Registration Statement will allow the Company the flexibility from time to time to offer and sell up to
Mark A. Smith, NioCorp's CEO and Executive Chairman, said: "The Shelf Registration Statement provides us with added flexibility so that NioCorp can access capital markets on a timely and efficient basis."
These securities may not be sold nor may offers to buy be accepted prior to the time the Shelf Registration Statement becomes effective. Any offering of the securities covered by the Registration Statement will be made solely by means of a prospectus and an accompanying prospectus supplement relating to that offering. A copy of the prospectus included in the Shelf Registration Statement may be obtained on the SEC's website at www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer for sale, or solicitation of an offer to buy, any of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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FOR MORE INFORMATION:
Jim Sims, Corporate Communications Officer, NioCorp Developments Ltd., (720) 334-7066, jim.sims@niocorp.com
ABOUT NIOCORP
NioCorp is developing a critical minerals project in Southeast Nebraska that is expected to produce niobium, scandium, and titanium. The Company also is evaluating the potential to produce several rare earths from the Project. Niobium is used to produce specialty alloys as well as High Strength, Low Alloy steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium is a specialty metal that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various lightweight alloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor, and medical implants. Magnetic rare earths, such as neodymium, praseodymium, terbium, and dysprosium are critical to the making of Neodymium-Iron-Boron magnets, which are used across a wide variety of defense and civilian applications.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements may include, but are not limited to, statements regarding the flexibility the Shelf Registration Statement will afford to NioCorp with regard to access the capital markets and potential future securities offerings, and NioCorp's expectation to produce niobium, scandium and titanium and the potential to produce rare earths at the Company's proposed critical minerals project in Southeast Nebraska (the "Elk Creek Project"). Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements are based on the current expectations of the management of NioCorp and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. Forward-looking statements reflect material expectations and assumptions, including, without limitation, expectations, and assumptions relating to NioCorp's ability to receive sufficient project financing for the construction of the Elk Creek Project on acceptable terms or at all, and NioCorp's ability to issue any securities registered on the Shelf Registration Statement in offerings on acceptable terms or at all. Such expectations and assumptions are inherently subject to uncertainties and contingencies regarding future events and, as such, are subject to change. Forward-looking statements involve a number of risks, uncertainties or other factors that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made by NioCorp with the U.S. Securities and Exchange Commission and with the applicable Canadian securities regulatory authorities and the following: NioCorp's ability to recognize the anticipated benefits of the business combination with GX Acquisition Corp. II (the "Business Combination") and the standby equity purchase agreement (the "Yorkville Equity Facility Financing Agreement" and, together with the Business Combination, the "Transactions") with YA II PN, Ltd., an investment fund managed by Yorkville Advisors Global, LP, including NioCorp's ability to access the full amount of the expected net proceeds under the Yorkville Equity Facility Financing Agreement over the next three years; unexpected costs related to the Transactions; the outcome of any legal proceedings that may be instituted against NioCorp following closing of the Transactions; NioCorp's ability to continue to meet the listing standards of The Nasdaq Stock Market LLC; NioCorp's ability to operate as a going concern; risks relating to NioCorp's common shares, including price volatility, lack of dividend payments and dilution or the perception of the likelihood any of the foregoing; NioCorp's requirement of significant additional capital; the extent to which NioCorp's level of indebtedness and/or the terms contained in agreements governing NioCorp's indebtedness or the Yorkville Equity Facility Financing Agreement may impair NioCorp's ability to obtain additional financing; covenants contained in agreements with NioCorp's secured creditors that may affect its assets; the possibility that NioCorp does not receive a final commitment of financing from the Export-Import Bank of the United States on the anticipated timeline, on acceptable terms, or at all; NioCorp's limited operating history; NioCorp's history of losses; the material weaknesses in NioCorp's internal control over financial reporting, NioCorp's efforts to remediate such material weaknesses and the timing of remediation; the possibility that NioCorp may qualify as a passive foreign investment company under the U.S. Internal Revenue Code of 1986, as amended (the "Code"); the potential that the Transactions could result in NioCorp becoming subject to materially adverse U.S. federal income tax consequences as a result of the application of Section 7874 and related sections of the Code; cost increases for NioCorp's exploration and, if warranted, development projects; a disruption in, or failure of, NioCorp's information technology systems, including those related to cybersecurity; equipment and supply shortages; variations in the market demand for, and prices of, niobium, scandium, titanium and rare earth products; current and future off take agreements, joint ventures, and partnerships; NioCorp's ability to attract qualified management; the effects of global health crises on NioCorp's business plans, financial condition and liquidity; estimates of mineral resources and reserves; mineral exploration and production activities; feasibility study results; the results of metallurgical testing; the results of technological research; changes in demand for and price of commodities (such as fuel and electricity) and currencies; competition in the mining industry; changes or disruptions in the securities markets; legislative, political or economic developments, including changes in federal and/or state laws that may significantly affect the mining industry; the impacts of climate change, as well as actions taken or required by governments related to strengthening resilience in the face of potential impacts from climate change; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the timing and reliability of sampling and assay data; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp's projects; risks of accidents, equipment breakdowns, and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining, or development activities; management of the water balance at the Elk Creek Project site; land reclamation requirements related to the Elk Creek Project; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; claims on the title to NioCorp's properties; potential future litigation; and NioCorp's lack of insurance covering all of NioCorp's operations.
Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of NioCorp prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.
All subsequent written and oral forward-looking statements concerning the matters addressed herein and attributable to NioCorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to herein. Except to the extent required by applicable law or regulation, NioCorp undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
SOURCE: NioCorp Developments Ltd.
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