By Devika Patel
Knoxville, Tenn., Oct. 2 - Surge Resources Inc. announced on Monday that all of the subscription receipts that were issued in its June private placement have been exchanged and the C$10.2 million that was held in escrow has been released, completing the deal.
Surge sold 12,000,000 subscription receipts at C$0.85 each. The deal also includes a greenshoe for 3,764,706 subscription receipts, or C$3.2 million.
Canaccord Capital Corp. was paid a 6% cash commission and also received an agent's warrant to purchase 600,000 common shares at C$0.85 apiece for one year.
The placement originally was announced on June 4 as an C$8.5 million offering of 10 million common shares. On June 13, the deal was expanded to include subscription receipts.
Surge also announced it has completed a previously announced asset acquisition of Transeuro Energy Corp.'s assets. On May 16, Surge acquired a 100% interest in four petroleum prospecting licenses in Papua New Guinea and all related geological, seismic and technical data owned or obtained by Transeuro in relation to the lands covered by the licenses. The licenses allow Surge to explore for petroleum and natural gas on the properties in Papua New Guinea.
In exchange for the assets, Surge paid Transeuro 30,000,000 common shares, with a deemed price of C$0.85 per share, for a total deemed consideration of C$25.5 million.
Surge is a resource exploration company based in Calgary, Alta.
| Issuer: | Surge Resources Inc.
|
| Issue: | Subscription receipts exchangeable for common shares
|
| Amount: | C$10.2 million
|
| Subscription receipts: | 12,000,000
|
| Greenshoe: | 3,764,706 subscription receipts
|
| Price: | C$0.85
|
| Warrants: | No
|
| Agent: | Canaccord Capital Corp.
|
| Fees: | 6% cash, warrant for 600,000 common shares
|
| Pricing date: | June 4
|
| Amended: | June 13
|
| Settlement date: | Oct. 1
|
| Stock symbol: | TSX Venture: SRH.H
|
| Stock price: | C$0.98 at close June 13
|
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