Oroco Resource Corp (OCO.V) has announced it is planning to raise up to C$13.6M in an unit offering with each unit priced at C$1.70. Each unit will consist of one common share and one full warrant with each warrant allowing the warrant holder to acquire an additional share of Oroco at C$2.40 during a 24 month period.
The offering is supposed to close soon which seems to indicate there’s plenty of interest in the current financing and this was confirmed on Tuesday after the closing bell when Oroco announced its financing was oversubscribed and the company is no longer accepting any new subscriptions. While a share price of C$1.70 still results in a market capitalization of C$340M for Oroco, the full warrant could be enticing for some investors, considering Oroco traded above the C$2.40 price level for the better part of 2021.
Disclosure: The author has a small long position in Oroco Resource Corp. Oroco is a sponsor of the website. Please read our disclaimer.
