First Nordic Metals Corp. (TSXV: FNM) (OTCQB: FNMCF) (Germany: HEG0) is announced its intent to complete a brokered private placement of up to 2,329,193 Swedish depository receipts (“SDRs”), a financial instrument issued by a Swedish bank representing shares in a non-Swedish company, in conjunction with its planned listing on the Nasdaq First North Growth Market (“Nasdaq First North”) in Sweden.
Each SDR is underpinned by one common share of the Company (each, a “Share”), at a price of SEK 3.22 per SDR (CA$ 0.45, assuming an exchange rate of SEK 7.15 to CA$ 1.00) for aggregate gross proceeds of up to SEK 7.5 million (CA$ 1.05 million) (the “Private Placement”). Certain Swedish investors have already provided subscription commitments of approximately SEK 5.5 million of the Private Placement.
SDR’s To Facilitate Nasdaq North Listing
On March 5, 2025, the Company received conditional approval for the listing of its SDRs on the Nasdaq First North; FNM is undertaking the current Private Placement to fulfil a requirement regarding a minimum number of SDR holders (300) for listing. If FNM receives final approval to list on the Nasdaq First North the first day for trading of the SDRs is expected to be March 21, 2025.
The Company has the possibility to increase the Private Placement by 776,398 SDRs, corresponding to additional gross proceeds of SEK 2.5 million, if the Private Placement is oversubscribed.
The net proceeds from the Private Placement will be used by the Company for exploration at its properties in Sweden, as well as general working capital and corporate purposes.
The Private Placement is directed to the public and institutional investors in Sweden and Finland. The Shares issued pursuant to the Private Placement that are underpinning the SDRs will be subject to a Canadian four-month and one day statutory hold period from the closing of the Private Placement. A subscriber in the Private Placement is not allowed to convert subscribed SDRs to Shares during the hold period in Canada.
Subscription of SDRs in the Private Placement is made to DNB Markets, a part of DNB Bank ASA, Sweden Branch (“DNB”), by completing the electronic application form, available on Application – public in Sweden – Form for Swedish investors and on Application – public in Finland – Form for Finnish investors. The application form is also available on DNB’s website (www.dnb.se/emission) and can be submitted by email to: emissioner@dnb.se.
The Private Placement is expected to close on or about March 12, 2025 and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional approval of the TSX Venture Exchange (“TSXV”). The Private Placement is also subject to final acceptance of the TSXV.
Augment Partners AB (“Augment”) is acting as the financial advisor to the Company in connection with the Private Placement. In consideration for its services, the Company has agreed to pay Augment a cash commission equal to 6% of the gross proceeds from the Private Placement.
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