Osisko Development closes $203 million private placement financing

Osisko Development Corp. (NYSE: ODV, TSXV: ODV) completed a private placement financing that raised approximately $203 million in gross proceeds. The company sold 99,065,330 units at $2.05 per unit.

The financing consisted of two components: a brokered offering of 58,560,000 units for $120 million and a non-brokered placement of 40,505,330 units for $83 million. Delaware investment firm Double Zero Capital LP contributed approximately $75 million to the non-brokered portion, acquiring a 15.4% stake in the company.

Each unit includes one common share and half of a warrant. The warrants allow holders to purchase additional shares at $2.56 each until August 15, 2027. The company may accelerate the warrant expiry date under certain conditions related to share price performance.

Osisko Development plans to use the proceeds to fund construction of its Cariboo Gold Project and for general corporate purposes. The company stated the proceeds, combined with a previously announced $450 million project loan facility, will provide sufficient funding to construct the project.

Company insiders purchased 628,000 units for $1.3 million. The underwriters received a 4.5% commission on the brokered portion, while Double Zero received a 4% investment fee paid in common shares.

Double Zero and Osisko Development entered into an investor rights agreement granting Double Zero the right to nominate one board director and providing customary pre-emptive rights. The investment firm is subject to a blocker provision preventing it from holding more than 19.9% of outstanding shares through warrant exercises without required approvals.

The securities are subject to a four-month Canadian hold period and remain subject to final acceptance by the TSX Venture Exchange.

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