Deal has C$3.5 million greenshoe; GMP, Haywood Securities are agents
By Devika Patel
Knoxville, Tenn., Dec. 6 - East West Petroleum Corp. said it plans a private placement of units. The C$26.5 million deal has a C$3.5 million greenshoe.
The company will sell 24,091,000 units of one common share and one half-share warrant at C$1.10 per unit on a best-efforts basis via a syndicate of agents led by GMP Securities LP and including Haywood Securities Inc.
Each whole warrant is exercisable at C$1.75 for two years. The strike price reflects a 32.58% premium to the Dec. 3 closing share price of C$1.32.
Greg Renwick, president and chief executive officer, said East West was undertaking the financing for "a number of reasons. We just announced the purchase of a [20%] interest in an oil field in Egypt," for one, he said. The funds will also be used for the company's 2011 work program, as well as to fund feasibility studies and for other general corporate purposes.
Renwick said investors had already shown interest in the deal and he believes there is "some real value there.
"The roadshow is this week," he said. "We'll see how it goes."
"We think the timing is good to be raising some money and we all think the valuation is there," he concluded.
Settlement is expected Dec. 22.
The oil and gas company is based in Vancouver, B.C.
Stephanie N. Rotondo contributed to this article
| Issuer: | East West Petroleum Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$26.5 million
|
| Greenshoe: | C$3.5 million
|
| Units: | 24,091,000
|
| Price: | C$1.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.75
|
| Agents: | GMP Securities LP (lead), Haywood Securities Inc.
|
| Pricing date: | Dec. 6
|
| Settlement date: | Dec. 22
|
| Stock symbol: | TSX Venture: EW
|
| Stock price: | C$1.32 at close Dec. 3
|
| Market capitalization: | C$68.4 million
|
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