Osisko Development Announces Oversubscribed and Fully Allocated Private Placement of Units

Rhea-AI Summary

Osisko Development (NYSE: ODV, TSXV: ODV) has announced that its private placement offering of Units has been oversubscribed and fully allocated. The company expects to issue 31,944,700 Units at US$1.80 per Unit, raising total gross proceeds of US$57.5 million. The offering is expected to close around November 12, 2024, subject to necessary approvals from the New York Stock Exchange and TSX Venture Exchange. The securities will have a four-month and one-day hold period from the closing date and have not been registered under the U.S. Securities Act.

Positive

• Successfully secured US$57.5 million in funding through oversubscribed private placement
• Strong investor interest demonstrated by full allocation and oversubscription

Negative

• Potential dilution for existing shareholders due to issuance of 31,944,700 new units
• Four-month hold period restricts immediate trading of new securities

Insights

Financial Analyst

The $57.5M private placement marks a significant capital raise for Osisko Development, demonstrating strong investor confidence despite challenging market conditions. At a price of $1.80 per unit, the oversubscribed offering suggests robust demand from institutional investors. The successful allocation of 31.9M units strengthens ODV's balance sheet, providing important working capital for their mining operations.

The four-month hold period and regulatory requirements indicate a structured approach to capital raising while protecting existing shareholders. The pricing represents current market conditions and the full exercise of the agents' option further validates investor interest. This financing enhances ODV's financial flexibility and operational capabilities, though dilution impacts should be considered by current shareholders.

US$57.5 Million Brokered Private Placement (Including Exercise In Full of Option) Expected to close November 12, 2024

MONTREAL, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Montreal, Québec, October 24, 2024 – Osisko Development Corp. (NYSE: ODV, TSXV: ODV) ("Osisko Development" or the "Company") is pleased to announce its private placement offering ("Offering") of units of the Company ("Units"), announced on October 23, 2024, was oversubscribed and has been fully allocated. This Offering is expected to close on or about November 12, 2024, pursuant to which an aggregate of 31,944,700 Units are expected to be issued at a price of US$1.80 per Unit for gross proceeds of US$57,500,460 (including the exercise in full of the agents' option).

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the conditional approval from the New York Stock Exchange and the TSX Venture Exchange. All securities issued under the Offering will be subject to a hold period expiring four months and one day from the Closing Date.

The securities have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the "United States" or "U.S. persons" (as such terms are defined in Regulation S under the U.S. Securities Act) absent registration under the U.S. Securities Act and all applicable U.S. state securities laws or compliance with an exemption from such registration requirements. This news release is not an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction.

ABOUT OSISKO DEVELOPMENT CORP.

Osisko Development Corp. is a North American gold development company focused on past-producing mining camps located in mining friendly jurisdictions with district scale potential. The Company's objective is to become an intermediate gold producer by advancing its 100%-owned Cariboo Gold Project, located in central B.C., Canada, the Tintic Project in the historic East Tintic mining district in Utah, U.S.A., and the San Antonio Gold Project in Sonora, Mexico. In addition to considerable brownfield exploration potential of these properties, that benefit from significant historical mining data, existing infrastructure and access to skilled labour, the Company's project pipeline is complemented by other prospective exploration properties. The Company's strategy is to develop attractive, long-life, socially and environmentally sustainable mining assets, while minimizing exposure to development risk and growing mineral resources.

For further information, visit our website at www.osiskodev.com or contact:

Sean Roosen	Philip Rabenok
Chairman and CEO	Director, Investor Relations
Email: sroosen@osiskodev.com	Email: prabenok@osiskodev.com
Tel: +1 (514) 940-0685	Tel: +1 (437) 423-3644

CAUTION REGARDING FORWARD LOOKING STATEMENTS

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward- looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding any potential outcome. Such statements in this news release may include, without limitation, statements pertaining to: the size of the Offering, the use of the net proceeds from the Offering, the closing of the Offering and the ability to obtain the necessary regulatory authority approvals. Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Actual results could differ materially due to a number of factors, including, without limitation, satisfying the conditions of closing for the Offering, including the requirements of the New York Stock Exchange and the TSX Venture Exchange (if at all). Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

FAQ

How much money did Osisko Development (ODV) raise in its October 2024 private placement?

Osisko Development raised US$57.5 million through an oversubscribed private placement offering of Units priced at US$1.80 per Unit.

When will Osisko Development's (ODV) private placement close?

The private placement is expected to close on or about November 12, 2024.

What is the price per Unit for Osisko Development's (ODV) private placement?

The Units are priced at US$1.80 per Unit.

How many Units will be issued in Osisko Development's (ODV) private placement?

Osisko Development will issue 31,944,700 Units in the private placement.