Gold Mountain Mining Stock Slides After Bought Deal Public Offering

Gold Mountain Mining Corp GMTN GMTNF entered into an amended agreement with Eight Capital, under which the Underwriters have now agreed to purchase, on a bought deal basis, 14.8 million units for C$1.25 per unit for aggregate gross proceeds of C$18.5 million.
The prior agreement consisted of 9.6 million units at C$1.25 per unit for aggregate gross proceeds of C$12 million.
Each Unit consists of one common share and one-half of one common share purchase warrant.
Each Warrant is exercisable into one common share at an exercise price of C$1.75 for 24 months from the closing of the offering.
The company plans to use the offering net proceeds for the development of the Elk Gold Project and working capital and general corporate purposes.
The offering is scheduled to close on or about April 21, 2022.
Price Action: GMTN shares are trading lower by 16.78% at C$1.19 on TSX, and GMTNF is lower by 16.26% at $0.95 on the last check Wednesday.