Deal offer two types of stock, funds drilling and operational activity
By Devika Patel
Knoxville, Tenn., Aug. 1 - Contact Exploration Inc. said it increased its private placement of stock to C$6.5 million from C$5 million. The deal priced with a C$750,000 greenshoe on July 25; the greenshoe has now been eliminated.
The company will now sell 14,009,616 common shares at C$0.26 apiece, which is identical to the July 24 closing share price. It also will sell 9,525,000 flow-through common shares at C$0.30 apiece, a 15.39% premium to the July 24 closing share price.
The deal will be conducted on a commercially reasonable, best-efforts basis by a syndicate of agents led by Integral Wealth Securities Ltd.
Settlement is expected Aug. 8.
Proceeds will be used for drilling and operational activity in the East Kakwa Montney Project area in the Deep Basin in Alberta and general corporate purposes.
Contact is an oil and gas exploration company based in Calgary, Alta.
| Issuer: | Contact Exploration Inc.
|
| Issue: | Common shares, flow-through common shares
|
| Amount: | C$6.5 million
|
| Warrants: | No
|
| Agents: | Integral Wealth Securities Ltd. (lead), Dundee Securities Corp., MGI Securities Inc. and Beacon Securities Ltd.
|
| Pricing date: | July 25
|
| Upsized: | Aug. 1
|
| Settlement date: | Aug. 8
|
| Stock symbol: | TSX Venture: CEX
|
| Stock price: | C$0.26 at close July 24
|
| Market capitalization: | C$57.75 million
|
|
|
| Common stock
|
| Amount: | C$3,642,500
|
| Shares: | 14,009,616
|
| Price: | C$0.26
|
|
|
| Flow-through stock
|
| Amount: | C$2,857,500
|
| Shares: | 9,525,000
|
| Price: | C$0.30
|
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