Company sells common shares, full warrants at C$0.13 per equity unit
By Devika Patel
Knoxville, Tenn., April 4 - Stetson Oil & Gas Ltd. said it will conduct a C$3 million non-brokered private placement of units.
The company will sell 23,076,923 units at C$0.13 apiece. Each unit consists of one common share and one warrant. Each two-year warrant will be exercisable at C$0.20. The strike price is a 33.33% premium to C$0.15, the April 3 closing share price.
Settlement is expected May 18.
Proceeds will be used to strengthen the corporate balance sheet, to pursue potential acquisition opportunities and for general corporate purposes. This financing is a part of a reorganization and growth plan, the company said in a press release, and the offering is a part of the recent share consolidation and historical asset cleanup process sanctioned by the board of directors.
The company noted that it is in a strong position, with a clean capital structure and positive working capital position, to pursue attractive opportunities aggressively.
Based in Calgary, Alta., Stetson is a junior oil and gas company with exploration assets in North Dakota.
| Issuer: | Stetson Oil & Gas Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$3 million
|
| Units: | 23,076,923
|
| Price: | C$0.13
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.20
|
| Agent: | Non-brokered
|
| Pricing date: | April 4
|
| Settlement date: | May 18
|
| Stock symbol: | TSX Venture: SSN
|
| Stock price: | C$0.15 at close April 3
|
| Market capitalization: | C$1.49 million
|
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