Oil producer sells units with two types of warrants at $5.75 per unit
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., July 12 - American Standard Energy Corp. announced a $13 million private placement of units. Canaccord Genuity Inc. is the lead placement agent, and Northland Capital Markets is co-placement agent.
The company will sell 2,260,870 units of one common share, one half-share series A warrant and one series B warrant at $5.75 per unit.
The whole five-year series A warrants are exercisable for 1,130,435 shares at $9.00 per share, which is a 15.39% premium to the July 11 closing share price of $7.80 and 113% of the average closing price of the shares for the five days ended July 11.
The series B warrants are only exercisable if certain events occur.
Andrew Wall, general counsel, told Prospect News that the company elected to do the offering "to further our acquisition and drilling plan." American Standard has made four to six acquisitions in the last six months, primarily in Texas and North Dakota, he said.
"We wouldn't have signed it had we not been," Wall remarked, when asked if the company was pleased with the deal's terms.
Settlement is expected July 15.
Proceeds will be used to acquire additional oil and natural gas acreage and for general working capital.
Based in Tempe, Ariz., American Standard is an oil exploration and production company.
| Issuer: | American Standard Energy Corp.
|
| Issue: | Units of one common share, one half-share series A warrant and one series B warrant
|
| Amount: | $13 million
|
| Units: | 2,260,870
|
| Price: | $5.75
|
| Warrants: | One half-share series A warrant and one series B warrant per unit
|
| Warrant expiration: | Five years (series A)
|
| Warrant strike price: | $9.00 (series A)
|
| Agents: | Canaccord Genuity Inc. (lead), Northland Capital Markets
|
| Pricing date: | July 12
|
| Settlement date: | July 15
|
| Stock symbol: | OTCBB: ASEN
|
| Stock price: | $7.80 at close July 11
|
| Market capitalization: | $291.14 million
|
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