Non-brokered deal funds acquisition of upstream oil and gas business
By Devika Patel
Knoxville, Tenn., Jan. 28 - Oando Energy Resources Inc. said it plans a $50 million non-brokered private placement of units.
The company will sell 35,070,063 units of one common share and a half-share warrant at C$1.57 per unit. Each whole warrant is exercisable at C$2.00 for two years. The strike price reflects a 22.7% premium to the Jan. 27 closing share price of C$1.63.
Proceeds will be used for the company's planned acquisition of the Nigerian upstream oil and gas business of ConocoPhillips.
Oando is an oil and gas exploration company based in Calgary, Alta.
Issuer: | Oando Energy Resources Inc.
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Issue: | Units of one common share and a half-share warrant
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Amount: | $50 million
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Units: | 35,070,063
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Price: | C$1.57
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Warrants: | One half-share warrant per unit
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Warrant expiration: | Two years
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Warrant strike price: | C$2.00
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Agent: | Non-brokered
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Pricing date: | Jan. 28
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Stock symbol: | Toronto: OER
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Stock price: | C$1.63 at close Jan. 27
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Market capitalization: | C$172.87 million
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