Offering will sell 166,666,667 units at C$0.15 apiece to Ringo Holding
By Devika Patel
Knoxville, Tenn., July 27 - Estrella International Energy Services Ltd. said it has received shareholder approval for a C$25 million private placement of units with Ringo Holding LP. The deal priced on June 26.
The company will sell 166,666,667 units of one common share and 0.4 warrants at C$0.15 per unit. Each whole warrant will be exercisable at C$0.15 for 18 months. The strike price is an 87.5% premium to the June 25 closing share price of C$0.08.
Proceeds will be used to repay $10 million of debt under the company's credit facility with Credit Suisse AG, to reduce other debt and for working capital reserves to assist with new project start-ups in Latin America.
The oilfield services company is based in Calgary, Alta.
Issuer: | Estrella International Energy Services Ltd.
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Issue: | Units of one common share and 0.4 warrants
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Amount: | C$25 million
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Units: | 166,666,667
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Price: | C$0.15
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Warrants: | 0.4 warrants per unit
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Warrant expiration: | 18 months
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Warrant strike price: | C$0.15
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Investor: | Ringo Holding LP
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Pricing date: | June 26
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Stock symbol: | TSX Venture: EEN
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Stock price: | C$0.08 at close June 25
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Market capitalization: | C$13.28 million
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