By Sheri Kasprzak
Atlanta, Oct. 26 - Geocan Energy Inc. said Tuesday morning it plans to raise C$10.7 million in a private placement.
The deal includes the sale of 5 million units of one share and one half-share purchase warrant at C$1.40 for proceeds of C$7 million. The whole warrants allow investors to buy an additional share at C$1.75 for 18 months from closing.
The remaining 2 million flow-through shares will be sold at C$1.85 per share for a total of C$3.7 million.
Octagon Capital Corp. will act as lead placement agent in the deal, and Woodstone Capital Inc., Dominick and Dominick Securities Inc., and Wolverton Securities Inc. will also participate as placement agents.
Octagon has the option to raise the size of the offering by up to 10% to cover over allotments.
Geocan is targeting investors in Alberta, British Columbia, and Ontario.
Geocan is a Toronto-based oil and gas exploration and production company. It plans to use the funds from the private placement for its 2004 and 2005 exploration and development program.
| Issuer: | Geocan Energy Inc.
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| Amount: | C$10.7 million
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| Placement agent: | Octagon Capital Corp. (lead agent); Woodstone Capital Inc.; Dominick and Dominick Securities Inc.; Wolverton Securities Inc.
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| Announcement date: | Oct. 26
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| Stock price: | C$1.55 at close on Oct. 25
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| Common share units
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| Issue: | Units of one common share and one ½ share purchase warrant
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| Shares: | 5 million units
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| Price: | C$1.40 per unit
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| Warrants: | ½ share purchase warrant per unit
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| Warrant expiration: | 18 months
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| Warrant strike price: | C$1.75
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| Flow-through shares
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| Issue: | Flow-through shares
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| Shares: | 2 million
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| Price: | C$1.85
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| Warrants: | No
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