Pulsar Helium Inc. has announced its intention to conduct a brokered private placement aimed at raising up to US$7.5 million.
The company plans to issue 19,736,842 common shares at a price of US$0.38 each (approximately GBP £0.30). The capital raised will be primarily allocated to exploration and development activities at Pulsar’s Topaz project in Minnesota, with the objective of establishing the region’s first helium and CO₂ production facility.
Key aspects of the private placement include the appointment of University Bank as the placement agent, which will receive a 6% commission on US-based placements. Additionally, University Bancorp is set to offer a potential line of credit worth US$4.0 million to a major shareholder, ABCrescent Coöperatief U.A. This line of credit will facilitate the exercise of 15.5 million warrants at a price of C$0.36.
On the operational front, Pulsar Helium Inc. is preparing to deepen the Jetstream #1 well by a minimum of 1,640 feet. This extension aims to reach the full depth of a helium reservoir that has previously demonstrated helium concentrations of 14.5%.
The Topaz project is strategically positioned to meet the increasing demand for helium, which is an essential resource for industries such as semiconductors, medical imaging, and aerospace. The successful completion of the private placement is contingent upon regulatory approvals and will include a four-month hold period for the issued securities.
Thomas Abraham-James, President & CEO of Pulsar, welcomed the strong support from US institutional investors, highlighting their shared vision for Pulsar to become a key player in the domestic helium market. He noted that the private placement, if fully completed, will secure funding for the company’s upcoming work programs, with additional potential funding from a major shareholder’s warrant exercise. The ultimate goal is to reach a final investment decision on building Minnesota’s first helium production facility at the Topaz project.
