NioCorp Developments Plunges 12.14% on $20M Offering

On April 18, 2025, NioCorp Developments experienced a significant drop of 12.14% in pre-market trading, reflecting a notable decline in investor sentiment.

NioCorp Developments recently announced the pricing of a $20 million underwritten public offering in the United States. The offering consists of 7,692,308 common shares at a public offering price of $2.60 per share, with Maxim Group LLC acting as the sole book-running manager and underwriter. The proceeds from this offering are expected to support the company's ongoing projects, including the development of the Elk Creek Project, which aims to produce niobium, scandium, and titanium, as well as several rare earth elements.

The company has also granted the underwriter a 30-day over-allotment option to purchase up to an additional 15 percent of the number of initial common shares in the offering. This move is part of NioCorp's strategy to secure sufficient project financing to complete the construction of the Elk Creek Project and move it to commercial operation. The offering is expected to close on or about April 21, 2025, subject to the satisfaction of customary closing conditions.