By Sheri Kasprzak
Atlanta, Dec. 14 - Saxon Energy Service Inc. said Tuesday it priced its previously announced C$36.3 million private placement.
The company will sell 12.1 million subscription receipts at C$3 each. The receipts consist of one share and one half-share warrant. The receipts are exchangeable for one common share and one half of one warrant upon the completion of the company's acquisition of a Venezuelan oil and gas service company.
The whole warrants allow for an additional share at C$3.75 each for 18 months.
Placement agents Westwind Partners Inc., Sprott Securities Inc. and GMP Securities Ltd. have an option to increase the size of the offering to C$50 million.
The deal is expected to close Dec. 22.
Saxon is a Calgary, Alta.-based oil and gas drilling, servicing and equipment renting business, which operates in Ecuador. The company plans to use the proceeds from the deal to acquire a Venezuelan oil and gas company for additional drilling rigs and rental equipment. The remainder of the funds will be used for general corporate purposes.
| Issuer: | Saxon Energy Service Inc.
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| Issue: | Subscription receipts of one share and one half-share warrant
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| Amount: | C$36.3 million
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| Shares: | 12.1 million receipts
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| Price: | C$3.00
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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$3.75
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| Greenshoe: | For up to an additional C$13.7 million
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| Placement agent: | Westwind Partners Inc., Sprott Securities Inc. and GMP Securities Ltd.
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| Announcement date: | Nov. 26
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| Pricing date: | Dec. 14
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| Settlement date: | Dec. 22
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| Stock price: | C$3.00 at close Dec. 13
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