Greenshoe exercised in part; deal finances acquisition of oil assets
By Devika Patel
Knoxville, Tenn., Jan. 30 - Hemisphere Energy Corp. said it completed an C$8.63 million private placement of units. The deal priced for C$7.5 million with a C$2.5 million greenshoe on Dec. 8.
The company sold 12,323,157 units of one common share and one half-share warrant at C$0.70 per unit on a commercially reasonable-efforts basis. Of the units, 1,608,157 were part of the partially exercised greenshoe.
Each whole warrant is exercisable at C$0.95 for two years. The strike price reflects a 26.67% premium to the Dec. 7 closing share price of C$0.75.
Canaccord Genuity Corp. was the agent.
The company also purchased oil-producing assets in the Jenner area of Alberta for C$6 million. The acquisition includes wells and associated production facilities producing about 105 barrels of oil per day.
Proceeds were used for the acquisition, capital expenditures and general corporate purposes.
The Vancouver, B.C.-based company explores and develops oil and gas properties.
| Issuer: | Hemisphere Energy Corp.
|
| Issue: | Units of one common share and one half share warrant
|
| Amount: | C$8,626,210 (including C$1,125,710 greenshoe)
|
| Units: | 12,323,157
|
| Price: | C$0.70
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.95
|
| Agent: | Canaccord Genuity Corp.
|
| Pricing date: | Dec. 8
|
| Settlement date: | Jan. 30
|
| Stock symbol: | TSX Venture: HME
|
| Stock price: | C$0.75 at close Dec. 7
|
| Market capitalization: | C$26.48 million
|
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