C$3.5 million greenshoe was fully exercised; deal funds acquisition
By Devika Patel
Knoxville, Tenn., Dec. 22 - East West Petroleum Corp. said it settled a private placement of units. The deal priced for C$26.5 million with a C$3.5 million greenshoe on Dec. 6 and raised the full C$30 million.
The company sold 27,273,000 units of one common share and one half-share warrant at C$1.10 per unit via a syndicate of agents led by GMP Securities LP and GMP Securities Europe LLP and including Haywood Securities Inc. Of the units, 3,182,000 were part of the fully exercised greenshoe.
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.
Proceeds will be used to acquire a 20% interest in an Egyptian producing oil field, to provide a reserve for the company's exploration and development costs for this acquisition, to repay bridge loans and for general working capital.
The oil and gas company is based in Vancouver, B.C.
| Issuer: | East West Petroleum Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$30,000,300, including fully exercised C$3.5 million greenshoe
|
| Units: | 27,273,000
|
| 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 and GMP Securities Europe LLP (leads), 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$79.71 million
|
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