Proceeds of offering are earmarked for exploration and working capital
By Devika Patel
Knoxville, Tenn., April 12 - Edge Resources Inc. said it settled the first tranche of a private placement of units and shares for C$2.11 million. The C$4.5 million deal priced on March 23.
The company is selling 10,526,315 units at C$0.38 apiece and 1,111,111 flow-through common shares at C$0.45 per share. It sold 4,509,500 units and 888,222 shares in the first tranche.
Each unit consists of one common share and one half-share warrant. Each full warrant will be exercisable at C$0.50 for 18 months.
The strike price is a 28.21% premium to the March 22 closing share price of C$0.39. The price per flow-through share is a 15.39% premium to that price.
Proceeds will be used for exploration and development of the company's lands in western Canada and working capital purposes.
Edge Resources is a Calgary, Alta., company focused on the exploration, development and production of shallow oil and natural gas horizons.
| Issuer: | Edge Resources Inc.
|
| Issue: | Units of one common share and one half-share warrant, flow-through common shares
|
| Amount: | C$4.5 million
|
| Pricing date: | March 23
|
| Settlement date: | April 12 (for C$2,113,310)
|
| Stock symbol: | TSX Venture: EDE
|
| Stock price: | C$0.41 at close March 22
|
| Market capitalization: | C$17.77 million
|
|
|
| Units
|
| Amount: | C$4 million
|
| Units: | 10,526,315
|
| Price: | C$0.38
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration | 18 months
|
| Warrant strike price: | C$0.50
|
|
|
| Shares
|
| Amount: | C$500,000
|
| Shares: | 1,111,111
|
| Price: | C$0.45
|
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