Non-brokered offering conducted to finance general corporate purposes
By Devika Patel
Knoxville, Tenn., June 25 – Elkwater Resources Ltd. said it will raise C$25 million in a non-brokered private placement of stock and units.
The company will sell 190 million common shares at C$0.10 apiece and 60 million units of one common share and one warrant at C$0.10 per unit. Each warrant will be exercisable at C$0.12 for five years.
The price per share is a 50% discount to the June 24 closing share price of C$0.20. The strike price reflects a 40% discount to that price.
Settlement is expected July 9.
Proceeds will be used for general corporate purposes.
The company also said it plans a rights offering under which shareholders will receive one right for each common share held. Each holder may purchase one common share for every four rights held at C$0.10 per share.
Elkwater is a Calgary, Alta.-based petroleum and natural gas development company.
| Issuer: | Elkwater Resources Ltd.
|
| Issue: | Common shares, units of one common share and one warrant
|
| Amount: | C$25 million
|
| Price: | C$0.10
|
| Agent: | Non-brokered
|
| Pricing date: | June 22
|
| Settlement date: | July 9
|
| Stock symbol: | TSX Venture: ELW
|
| Stock price: | C$0.20 at close June 24
|
| Market capitalization: | C$9.47 million
|
|
|
| Shares
|
| Amount: | C$19 million
|
| Shares: | 190 million
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$6 million
|
| Units: | 60 million
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.12
|
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