Non-brokered deal funds company’s C$11.01 million TERIC acquisition
By Devika Patel
Knoxville, Tenn., Oct. 5 – Blacksteel Energy Inc. said it raised C$619,000 in the second tranche of a C$3.5 million non-brokered private placement of units and convertible debentures on Sept. 30. The deal priced on July 30 and raised C$1,109,400 on Sept. 16.
The company is selling units of one common share and one half-share warrant at C$0.15 per unit. It sold 2,976,000 units in the first tranche and units in the second.
Each whole, 18-month warrant is exercisable at C$0.25, a 66.67% premium to the July 29 closing share price of C$0.15.
The company also is selling up to C$1.8 million of 8.5% four-year debentures. It sold C$663,000 of convertibles in the initial tranche and C$619,000 of debentures in the second tranche.
The debenture converts to common stock at C$0.25 per share, which is also a 66.67% premium to the July 29 closing share price. The company may redeem the debentures or force conversion after two years.
The company is conducting the offering in connection with its planned acquisition of Teric Power Ltd. for C$11.01 million.
Proceeds will be used for development of the company’s portfolio of energy projects, working capital and general corporate purposes.
Canaccord Genuity Corp. received an 8% finder’s fee of $35,712 in the first tranche. The agent also received 591,680 finder's warrants, exercisable at C$0.15 until Sept. 16, 2016. The company paid an 8% finder's fee of $49,520 to Canaccord Genuity in the second tranche. The agent also received 330,133 finder's warrants, exercisable at C$0.15 until Sept. 30, 2016.
The oil and gas company is based in Calgary, Alta.
| Issuer: | Blacksteel Energy Inc.
|
| Issue: | Units of one common share and one half-share warrant, convertible debentures
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| Amount: | C$3.5 million
|
| Agent: | Non-brokered
|
| Pricing date: | July 30
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| Settlement dates: | Sept. 16 (for C$1,109,400), Sept. 30 (for C$619,000)
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| Stock symbol: | TSX Venture: BEY
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| Stock price: | C$0.15 at close July 29
|
| Market capitalization: | C$4.51 million
|
|
|
| Units
|
| Price: | C$0.15
|
| Warrants: | One half-share warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$0.25
|
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| Debentures
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| Amount: | C$1.8 million (maximum)
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| Maturity: | Four years
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| Coupon: | 8.5%
|
| Conversion price: | C$0.25
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| Conversion premium: | 66.67%
|
| Call: | After two years
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