Deal funds capital expenditure programs, development, working capital
By Devika Patel
Knoxville, Tenn., Feb. 28 - Terra Energy Corp. said it raised C$1.5 million in the initial tranche of a non-brokered private placement of units. The deal priced for C$1.25 million on Feb. 21.
The company is selling units of one common share and one warrant at C$0.40 per unit and flow-through common shares at C$0.40 apiece. It sold 1,755,000 units and 2 million shares in the first tranche.
Each whole warrant is exercisable at C$0.50 until June 30, 2015. The strike price is a 38.89% premium to the Feb. 20 closing share price of C$0.36. The price per flow-through share is an 11.11% premium to that price.
Settlement of the remaining units and shares is expected on March 22.
Proceeds will be used for Terra's 2014 capital expenditure programs, development and general working capital purposes.
Based in Calgary, Alta., Terra is an oil and natural gas exploration and development company.
| Issuer: | Terra Energy Corp.
|
| Issue: | Units of one common share and one warrant, flow-through common shares
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| Amount: | C$1.25 million (initially planned)
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| Price: | C$0.40
|
| Agent: | Non-brokered
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| Pricing date: | Feb. 21
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| Settlement date: | Feb. 28 (for C$1,502,000), March 22
|
| Stock symbol: | Toronto: TT
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| Stock price: | C$0.36 at close Feb. 20
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| Market capitalization: | C$39.65 million
|
|
|
| Units
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| Warrants: | One warrant per unit
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| Warrant expiration: | June 30, 2015
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| Warrant strike price: | C$0.50
|
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| Flow-through shares
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| Warrants: | No
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