Each unit will still consist of one common share of Lion One plus one common share purchase warrant with an exercise price of C$0.50 for a period of three years.
Lion One has also removed the 15% overallotment option granted to Eight Capital in the previous arrangement, which could have taken the gross proceeds to around C$8.6 million. Now, the company is seeking to raise C$10 million without overallotment.
However, the financing announcements did little to boost shareholder confidence, as Lion One Metals plummeted over 20% during the early hours of trading in Toronto to as low as C$0.33, setting a new 52-week low and less than a third of its 52-week high of C$1.04.
By 11:10 a.m. ET, the stock traded at $0.36 with a market capitalization of C$81 million. Trading volume hovered around 1.2 million shares, which was over 10 times its daily average.
The financing comes a week after the company announced its operating results for the…
