By Devika Patel
Knoxville, Tenn., Aug. 28 - Stetson Oil & Gas Ltd. said it will raise C$10 million in a private placement of units.
The company will sell 50 million units at C$0.20 each. The units consist of one common share and one warrant.
Each warrant is exercisable at C$0.30 for two years.
The deal will be conducted by a syndicate of underwriters led by Canaccord Capital Corp. and including Macquarie Capital Markets Canada Ltd.
The deal will settle on Sept. 17.
Proceeds will be used to close on the lease acquisitions Stetson has agreed to purchase. These leases, one for land on the Fort Berthold Reservation in North Dakota and the other for about 11,000 acres of land held in trust by the U.S. Department of the Interior, will cost $8.3 million and are expected to settle by the end of September.
As previously reported, the company threatened legal action against underwriter Thomas Weisel Partners Canada Inc. regarding a C$25 million private placement of subscription receipts that priced July 14, but never materialized.
In an Aug. 22 8-K filing with the Securities and Exchange Commission, Thomas Weisel reported it received a letter from Stetson announcing plans to pursue legal remedies against the underwriter.
Since Stetson has since managed to arrange a significant private placement with another broker, it could possibly decide to drop these threats against Thomas Weisel.
Based in Calgary, Alta., Stetson Oil & Gas is an oil and gas company.
| Issuer: | Stetson Oil & Gas Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$10 million
|
| Units: | 50 million
|
| Price: | C$0.20
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agent: | Canaccord Capital Corp. (lead), Macquarie Capital Markets Canada Ltd.
|
| Pricing date: | Aug. 28
|
| Settlement date: | Sept. 17
|
| Stock symbol: | TSX Venture: SSN
|
| Stock price: | C$0.30 at close Aug. 27
|
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