Deal at 7% premium to 30-day VWAP; proceeds to fund exploration
By Susanna Moon
Chicago, Feb. 27 - Oil Basins Ltd. said it placed 50 million new common shares with "sophisticated" and "professional" investors at A$0.032 per share to raise A$1.6 million. The placement was completed at a 7% premium to the company's 30-day volume-weighted average price estimated at about A$0.03 per share.
Subscribers include clients of Equity Underwriters Pty Ltd. and Alpha Secuities Pty Ltd.
The placement will ensure the company is funded to advance its planned 2012 exploration program, including the production test of Backreef-1. Proceeds will also be used for working capital commitments and to pursue additional value creating projects, according to a company press release.
The oil and gas explorer is based in St. Kilda, Australia.
| Issuer: | Oil Basins Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$1.6 million
|
| Shares: | 50 million
|
| Price: | A$0.032
|
| Warrants: | No
|
| Investors: | Equity Underwriters Pty Ltd. and Alpha Securities Pty Ltd.
|
| Settlement date: | Feb. 27
|
| Stock symbol: | Australia: OBL
|
| Stock price: | A$0.38 at close Feb. 27
|
| Market capitalization: | A$13.12 million
|
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