Ausam raises $46 million from placement of units, convertible debt

By Laura Lutz

Washington, Feb. 1 - Ausam Energy Corp. sold $43 million of equity and $3 million of convertible notes in a private placement associated with the company's acquisition of oil and gas leases in Texas, Louisiana, Mississippi, Alabama and Arkansas.

The private placement priced on Nov. 21 as an offering of units for up to $60 million and at least $45 million.

The final terms of the placement were not released.

When it was announced, the deal was expected to include up to 114,613,181 units and at least 85,959,885 units at $0.5235 each. The units were to consist of one share and one half-share warrant with each whole warrant exercisable at C$0.65 each for two years.

The deal was originally set to close on Dec. 31.

Under the acquisition agreement, Ausam was required to raise at least $45 million in a private placement.

The leases are expected to cost $35 million, comprised of $15 million in cash and 63,417,143 shares of stock.

Calgary, Alta.-based Ausam is an oil and natural gas exploration company.

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