Offerings raise funds to evaluate Nordegg resource play in Alberta
By Devika Patel
Knoxville, Tenn., Oct. 28 - Anglo Canadian Oil Corp. said it has arranged a private placement of units and flow-through common shares. The deal will be conducted by a syndicate of agents co-led by PI Financial Corp., Mackie Research Capital Corp. and Octagon Capital Corp.
The company will sell 7,142,900 units at C$0.21 apiece for C$1.5 million. It will sell 20 million shares at C$0.25 per share for C$5 million, raising a total of C$6.5 million.
Each unit will consist of one common share and one half-share warrant, with each whole warrant exercisable at C$0.28 for 18 months.
The price of the flow-through shares is a 4.17% premium to the Oct. 27 closing share price of C$0.24. The strike price of the warrants is a 14.29% premium to the Oct. 27 share price.
The company said it also plans a non-brokered offering of the units and shares for C$2 million.
The majority of the proceeds will be used to further evaluate the company's prospective Nordegg resource play in west central Alberta. The remainder will be used for general corporate purposes and to increase production on the Bakken resource play in southwest Saskatchewan.
Anglo Canadian is a Calgary, Alta.-based petroleum and natural gas company.
| Issuer: | Anglo Canadian Oil Corp.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$8.5 million
|
| Agents: | PI Financial Corp., Mackie Research Capital Corp. and Octagon Capital Corp. (for C$6.5 million), non-brokered (for C$2 million)
|
| Pricing date: | Oct. 28
|
| Stock symbol: | TSX Venture: ACG
|
| Stock price: | C$0.24 at close Oct. 27
|
| Market capitalization: | C$25.36 million
|
|
|
| Brokered offering
|
| Amount: | C$6.5 million
|
|
|
| Units
|
| Amount: | C$1.5 million
|
| Units: | 7,142,900
|
| Price: | C$0.21
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.28
|
|
|
| Shares
|
| Amount: | C$5 million
|
| Shares: | 20 million
|
| Price: | C$0.25
|
| Warrants: | No
|
|
|
| Non-brokered offering
|
| Amount: | C$2 million
|
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