Company conducts deal through Euro Pacific to purchase Bakken Project
By Devika Patel
Knoxville, Tenn., Feb. 14 - WellStar Energy Corp. said it priced a $45 million private placement of convertible debenture units. The company also said it plans a C$15 million private placement of equity units. Euro Pacific Capital Inc. is the agent.
The company will sell units of a $1,000 9% convertible debenture and 50% warrant coverage at $1,000 per unit. Each warrant is exercisable at $1.00 for four years.
The convertibles mature in five years and will be convertible into common stock at $0.90 per share.
The company will also sell 20 million units of one common share and one half-share warrant at C$0.75 per unit. Each whole warrant is exercisable at C$1.00 for two years. The strike price represents a 566.67% premium to C$0.15, the Feb. 13 closing share price.
Proceeds will be used to purchase the Bakken Project.
Based in Vancouver, B.C., WellStar is an oil and natural gas exploration company.
| Issuer: | WellStar Energy Corp.
|
| Issue: | Units of a $1,000 convertible debenture and 50% warrant coverage, units of one common share and one half-share warrant
|
| Amount: | $45 million, C$15 million
|
| Agents: | Euro Pacific Capital Inc.
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| Pricing date: | Feb. 14
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| Stock symbol: | TSX Venture: WSE.H
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| Stock price: | C$0.15 at close Feb. 13
|
| Market capitalization: | C$5.08 million
|
|
|
| Debenture units
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| Amount: | $45 million
|
| Price: | $1,000.00
|
| Maturity: | Five years
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| Coupon: | 9%
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| Conversion price: | $0.90
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| Warrants: | 50% coverage
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| Warrant strike price: | $1.00
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| Warrant expiration: | Four years
|
|
|
| Equity units
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| Amount: | C$15 million
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| Units: | 20 million
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| Price: | C$0.75
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| Warrants: | One half-share warrant per unit
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| Warrant strike price: | C$1.00
|
| Warrant expiration: | Two years
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