By Sheri Kasprzak
New York, Nov. 21 - Ausam Energy Corp. priced a private placement for up to $60 million and at least $45 million.
The deal includes up to 114,613,181 units and at least 85,959,885 units at $0.5235 each.
The units consist of one share and one half-share warrant with each whole warrant exercisable at C$0.65 each for two years.
The deal is set to close Dec. 31.
Proceeds will be used to pay the cash portion of the company's acquisition of oil and gas leases in Texas, Louisiana, Mississippi, Alabama and Arkansas. The leases are expected to cost $35 million, comprised of $15 million in cash and 63,417,143 in stock.
Under the acquisition agreement, Ausam was required to raise at least $45 million in a private placement.
Calgary, Alta.-based Ausam is an oil and natural gas exploration company.
| Issuer: | Ausam Energy Corp.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | $60 million (maximum); $45 million (minimum)
|
| Units: | 114,613,181 (maximum); 85,959,885 (minimum)
|
| Price: | $0.5235
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.65
|
| Pricing date: | Nov. 21
|
| Settlement date: | Dec. 31
|
| Stock symbol: | TSX Venture: AUZ
|
| Stock price: | C$0.27 at close Nov. 21
|
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