Replies to post #39378 on Niocorp Developments Ltd (NB)

[freedom5]

The release on July 20 states

The Company will not receive any proceeds from the Offering.

Its investors money.

[freedom5]

Just took a quick glance at that, you may be correct? Will read more later.

[freedom5]

Page 34 refers to the $150 million offering from May that is held in escrow that will pay down or off Largo debt.

Page 35 shows a different 60 million share arrangement that the company approves of its directors selling 60 million shares or (9 mill more) for increased market liquidity. But it looks like it’s not for any company benefit. Which means it’s for their reasons .
This is my understanding. Please correct me if you see it differently.

[freedom5]

And page 36 shows use of proceeds of the sale of the 60 million shares.

[freedom5]

From page 36 :


USE OF PROCEEDS
The net proceeds to the Selling Shareholders from the Offering is estimated to be approximately $78,960,000 after deduction of the Underwriters’ Fees. If the Over-Allotment Option is exercised in full, the net proceeds to the Selling Shareholders, after deducting the Underwriters’ Fees will be $90,804,000.
The expenses of the Offering are estimated to be US$800,000. Whether or not the closing of the Offering occurs, all expenses of or incidental to the creation, issue, delivery and marketing of the Offering will be borne by the Company. If the Offering is terminated, other than by reason of a default by one of the Underwriters, the Company will reimburse the Underwriters for any and all expenses reasonably incurred by them, including, for greater certainty, the fees and disbursements of the Underwriters’ legal counsel.
The Company will not receive any proceeds from the Offering. However, the Company believes that the orderly distribution of the Offered Shares sold by the Selling Shareholders is beneficial to the Company and its shareholders, particularly by providing increased liquidity in the Common Shares listed on the TSX and OTCQX, and has therefore agreed to facilitate the Offering under this prospectus.