Two-year agreement with 35% warrant coverage inked with Socius CG II
By Devika Patel
Knoxville, Tenn., Oct. 17 - Oilsands Quest Inc. said it arranged a C$12 million two-year financing with Socius CG II, Ltd.
The company may sell 10% redeemable preferred shares to Socius over two years with 35% warrant coverage. The exercise price of the two-year warrants will equal the closing bid price of the company's common stock on the preceding day.
In addition, Socius received an additional investment right to buy common stock valued at 100% of the amount of the preferred stock, at a per-share price equal to the exercise price of the warrants.
This financing ensures the company's near-term liquidity until it completes its planned sale of the Wallace Creek asset and as it prepares to advance the Axe Lake pilot project and continues to assess strategic partnerships and longer-term development plans.
Oilsands, based in Calgary, Alta., is an oil and gas exploration company.
| Issuer: | Oilsands Quest Inc.
|
| Issue: | Redeemable preferred stock
|
| Amount: | C$12 million
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| Tenor: | Two years
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| Dividends: | 10%
|
| Warrants: | 35% coverage
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| Warrant expiration: | Two years
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| Investor: | Socius CG II, Ltd.
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| Pricing date: | Oct. 17
|
| Stock symbol: | Amex: BQI
|
| Stock price: | $0.24 at close Oct. 14
|
| Market capitalization: | $86.61 million
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