Desert Mountain closes $1.06M overallotment option

Mar 31, 2023

2023-03-31 12:47 ET – News Release

Mr. Robert Rohlfing reports

DESERT MOUNTAIN ENERGY ANNOUNCES CLOSING OF OVER-ALLOTMENT OPTION FOR ADDITIONAL GROSS PROCEEDS OF $1 MILLION

Desert Mountain Energy Corp., further to its news release on March 24, 2023, announcing the closing of its best-efforts public offering of units, Beacon Securities Ltd. has fully exercised the remainder of its overallotment option to sell an additional 545,000 units of the company at a price per overallotment unit of $1.95 for gross proceeds of $1,062,750, and aggregate gross proceeds of $23,097,750 for the total offering.

Each overallotment unit is composed of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price of $2.70 per common share. The warrant is exercisable for a period of 24 months from the March 24, 2023, closing of the offering. If, at any time after the closing date and prior to the expiry date of the warrants, the volume-weighted average trading price of the company’s common shares on the TSX Venture Exchange is greater than $4.50 for a period of 10 consecutive trading days, the company may, within 10 business days of the occurrence of such event, accelerate the expiry date of the warrants by giving notice to the holders of the warrants, and issuing a concurrent press release, and, in such case, the expiry date of the warrants shall be the date specified by the company in the warrant acceleration notice, provided such date shall not be less than 30 trading days following delivery of the warrant acceleration notice.

In connection with this closing of the overallotment option, the company paid to the agent a cash fee of $63,765 and issued to the agent 32,700 compensation options. Each agent’s compensation option entitles the holder thereof to purchase one common share at the issue price for a period of 24 months from the closing date.

The offering was made pursuant to a short-form prospectus filed in each of the provinces of Canada with the exception of Quebec. A copy of the short-form prospectus, which contains important information relating to the units, and other matters, is available on SEDAR.

About Desert Mountain Energy Corp.

Desert Mountain Energy is a publicly traded resource company primarily focused on exploration, development and production of helium, hydrogen and noble gases. The company is primarily looking for elements deemed critical to the renewable energy and high-technology industries.

We seek Safe Harbor.

https://www.desertmountainenergy.com/