Proceeds to fund capital program and general working capital purposes
By Devika Patel
Knoxville, Tenn., Dec. 13 - Birch Lake Energy Inc. said it increased a non-brokered private placement of units as a result of a strong demand. The deal, which priced for C$750,000 on Dec. 10, will now raise C$1 million.
The company will sell 5 million units of a common share and a half-share warrant at C$0.20 per unit. Insiders are expected to participate.
Each whole warrant will be exercisable at C$0.50 for eight months. The strike price reflects a 138.1% premium to the Dec. 9 closing share price of C$0.21.
Settlement is expected Dec. 20.
Proceeds will be used to finance the company's capital program and for general working capital.
The junior oil and gas company is based in Calgary, Alta.
| Issuer: | Birch Lake Energy Inc.
|
| Issue: | Units of a common share and a half-share warrant
|
| Amount: | C$1 million
|
| Units: | 5 million
|
| Price: | C$0.20
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Eight months
|
| Warrant strike price: | C$0.50
|
| Agents: | Non-brokered
|
| Pricing date: | Dec. 10
|
| Upsized: | Dec. 13
|
| Settlement date: | Dec. 20
|
| Stock symbol: | TSX Venture: BLK
|
| Stock price: | C$0.25 at close Dec. 10
|
| Market capitalization: | C$1.82 million
|
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