NioCorp Announces Proposed Public Offering of Common Shares

NioCorp Developments Ltd. has commenced a proposed public offering in the US, consisting of common shares or pre-funded warrants. Maxim Group LLC is the sole placement agent, and the net proceeds will be used for working capital and advancing the Elk Creek Project. The offering is subject to market conditions and there is no assurance as to its completion, size, pricing, or terms.

NioCorp Developments Ltd. (NASDAQ: NB) has announced the commencement of a proposed public offering in the United States. The offering, which consists of common shares or pre-funded warrants, is being conducted through Maxim Group LLC as the sole placement agent on a best efforts basis. The net proceeds from the offering will be used for working capital and general corporate purposes, including advancing the construction of the Elk Creek Project.

The offering is subject to market conditions and there is no assurance as to its completion, size, pricing, or terms. Maxim Group LLC is acting as the sole placement agent, and the company has explicitly excluded Canadian purchasers from participation. The offering is being made pursuant to an effective shelf registration statement on Form S-3, which was previously filed with the U.S. Securities and Exchange Commission (SEC) on June 13, 2024, and subsequently declared effective by the SEC on June 27, 2024 [3].

NioCorp's Elk Creek Project focuses on critical minerals such as niobium, scandium, and titanium, which are used in various industries including automotive, pipeline applications, fuel cells, aerospace, and medical implants. The company's ability to successfully transition this project from development to commercial operation is fundamental to its valuation proposition and future revenue potential [2].

The company's recent stock performance has been notable, with a surge of over 130% in the past six months, according to InvestingPro data. Additionally, NioCorp's financial health score is considered good, and the company has achieved impressive revenue growth of 76% in the last twelve months while operating with moderate debt levels [2].

In other news, NioCorp Developments Ltd. has announced the pricing of its public offering of common shares, aiming to raise $20 million. The offering is priced at $2.60 per share and involves 7,692,308 common shares with an option for underwriter Maxim Group LLC to purchase an additional 15% of the shares. The company will also join the Russell 3000 Index on June 30, 2025, reflecting its market capitalization among the 4,000 largest U.S. stocks [2].

NioCorp's stock is currently rated as "Outperform" by analysts, with an average price target of $4.50, indicating a potential upside of 47.06% from the current trading price of $3.06. The consensus recommendation from brokerage firms positions NioCorp at an average recommendation score of 2.0, translating to an "Outperform" status [1].

References:
[1] https://www.gurufocus.com/news/2971709/niocorp-developments-nb-reports-annual-eps-and-cash-holdings
[2] https://www.investing.com/news/company-news/niocorp-launches-public-offering-to-fund-elk-creek-project-93CH-4138630
[3] https://www.stocktitan.net/news/NB/nio-corp-announces-commencement-of-proposed-public-offering-of-l3eshvzfmbky.html