Metalla Royalty & Streaming Ltd. (MTA) recently entered into an equity distribution agreement with a syndicate of agents to establish an at-the-market (ATM) equity program.
The companies from both Canada and the United States have been included in the syndicate with BMO Capital Markets Corp. and Cormark Securities (USA) Limited was the agents in the United States. BMO Nesbitt Burns Inc. Cormark Securities Inc. and Eight Capital are the part of syndicate from Canada. BMO Nesbitt Burns Inc. was the “Lead Canadian Agent” while BMO Capital Markets Corp. was the “Lead U.S. Agent”.
Under the ATM Program, the company on its own discretion will distribute $20 million or equivalent amount of its common share in Canadian dollars. The company will be issuing offered shares through its agents to public from time to time. The shares so sold under ATM program will be at prevailing market price at the time of those sales.
The company will use the proceeds for general working capital purposes. The other utilizations of the proceeds by the company could be financing of the future purchases of royalties and streams. The company will leverage the availability and flexibility of the ATM Program in financing small transactions while for larger transactions it will be using the amended Beedie Convertible Loan Facility.
As per the distribution agreement, agents will facilitate the sales of shares offered through at-the-market distributions on the NYSE American LLC, TSX Venture Exchange or any other trading market for the sale of offered shares in the United States and Canada. The distribution by agents will be made as per definition in National Instrument 44-102 – Shelf Distribution. Under the distribution agreement, it is not obligatory for the company to offer shares for sale.
The distribution agreement will stand terminated on June 1, 2022, or upon reaching the aggregate amount of US$20 million (or the equivalent in Canadian dollars) for aggregate gross sales proceeds of the Offered Shares sold under the ATM Program; whichever comes first.