Deal finances company's capital program and working capital purposes
By Devika Patel
Knoxville, Tenn., Aug. 31 - Birch Lake Energy Inc. said it completed a C$788,000 non-brokered private placement of units. The deal priced for C$1 million on Aug. 19.
The company sold 2,225,000 flow-through units of one flow-through common share and one warrant at C$0.20 per unit for C$445,000 and 2,143,750 common units of one common share and a warrant at C$0.16 per unit for C$343,000.
Each warrant is exercisable at C$0.30 for one year. The strike price reflects a 114.29% premium to the Aug. 18 closing share price of C$0.14.
Proceeds will be used for the company's capital program and general working capital purposes.
The junior oil and gas company is based in Calgary, Alta.
| Issuer: | Birch Lake Energy Inc.
|
| Issue: | Flow-through units of one flow-through common share and a warrant, common units of one common share and a warrant
|
| Amount: | C$788,000
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.30
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 19
|
| Settlement date: | Aug. 31
|
| Stock symbol: | TSX Venture: BLK
|
| Stock price: | C$0.14 at close Aug. 19
|
| Market capitalization: | C$3.65 million
|
|
|
| Flow-through units
|
| Amount: | C$445,000
|
| Units: | 2,225,000
|
| Price: | C$0.20
|
|
|
| Common units
|
| Amount: | C$343,000
|
| Units: | 2,143,750
|
| Price: | C$0.16
|
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