Non-brokered offering's proceeds earmarked for general working capital
By Devika Patel
Knoxville, Tenn., March 14 - Otis Gold Corp. announced it settled the second and final tranche of a non-brokered private placement of units. The deal priced for C$2.2 million on Oct. 18 and was increased to C$2.75 million on Nov. 2; Otis Gold raised C$2.49 million on Nov 3 and C$253,000 in this closing.
The company sold a total of 4.99 million units at C$0.55 each. It sold 4.53 million units of one common share and one warrant in the first tranche and 460,000 units in the second. Each warrant is exercisable at C$0.80 for 18 months.
The strike price reflects a 42.86% premium to the Oct. 15 closing share price of C$0.56.
Galena Special Situations Master Fund Ltd. invested C$1,804,000 in the first tranche and C$231,000 in the second.
Proceeds will be used for general working capital.
Otis Gold is a resource company in Vancouver, B.C.
| Issuer: | Otis Gold Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$2,744,500
|
| Units: | 4.99 million
|
| Price: | C$0.55
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.80
|
| Agent: | Non-brokered
|
| Investor: | Galena Special Situations Master Fund Ltd. (for C$2,035,000)
|
| Pricing date: | Oct. 18
|
| Upsized: | Nov. 2
|
| Settlement date: | Nov. 3 (for C$2,491,500), March 14 (for C$253,000)
|
| Stock symbol: | TSX Venture: OOO
|
| Stock price: | C$0.56 at close Oct. 15
|
| Market capitalization: | C$16.72 million
|
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