By Sheri Kasprzak
New York, Oct. 4 - Arsenal Energy Inc. said it has arranged a private placement for C$10 million.
The company plans to sell 5,714,286 units at C$1.75 each.
The units are comprised of one share and one half-share warrant. The whole warrants are exercisable at C$2.50 each for 18 months.
The expiry of the warrants may be accelerated to 10 days if the company's stock trades above C$3.00 for more than 20 consecutive trading days.
The deal, which is expected to close Oct. 31, is being placed through a syndicate of underwriters led by Wellington West Capital Inc. and Research Capital Corp., and including PowerOne Capital Markets Ltd.
Proceeds will be used for exploration and drilling, the repayment of bank debt and general corporate purposes.
Based in Calgary, Alta., Arsenal is an oil and natural gas exploration company.
| Issuer: | Arsenal Energy Inc.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$10 million
|
| Units: | 5,714,286
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| Price: | C$1.75
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$2.50
|
| Underwriters: | Wellington West Capital Inc. (lead); Research Capital Corp. (lead); PowerOne Capital Markets Ltd.
|
| Pricing date: | Oct. 4
|
| Settlement date: | Oct. 31
|
| Stock price: | C$1.85 at close Oct. 3
|
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