Company says investor Pelagic fails to submit subscription funds
By Angela McDaniels
Tacoma, Wash., Sept. 11 - Adira Energy Ltd. terminated its $5 million non-brokered private placement of common shares with Pelagic Investments Ltd. and is arranging a non-brokered private placement of up to C$1 million.
The company will sell up to 20 million units for C$0.05 each.
Each unit will consist of one common share and one warrant exercisable at C$0.10 for 24 months.
The warrant strike price is a 25% premium over the company's C$0.04 closing share price on Sept. 10.
Adira said it has received conditional commitments from some subscribers for C$250,000.
The private placement is expected to close Sept. 30. Proceeds will be used for working capital purposes.
Pelagic placement
Plans for the placement with Pelagic Investments were announced July 3. The company had planned to sell 61,728,395 common shares for $0.081 each.
On Wednesday, the company said Pelagic Investments breached the subscription agreement by failing to submit the subscription funds to Adira.
The company now intends to pursue legal action against Pelagic Investments and its principal, Prentis B. Tomlinson Jr.
Adira also announced that due to the breach of the subscription agreement, it was unable to meet its obligations under its settlement agreement with Modi'in Energy Ltd. and Brownstone Energy Inc. At the request of Modi'in, Adira may be required to relinquish its interest in the Gabriella License, but this request has so far not been made.
Adira Energy is an oil and gas explorer based in Toronto.
| Issuer: | Adira Energy Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1 million
|
| Price: | C$0.05
|
| Warrants: | One warrant for one share per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
| Pricing date: | Sept. 11
|
| Settlement date: | Sept. 30
|
| Stock symbol: | TSX Venture: ADL
|
| Stock price: | C$0.04 at close Sept. 10
|
| Market capitalization: | C$2.41 million
|
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