By Devika Patel
Knoxville, Tenn., Oct. 2 - Enhanced Oil Resources Inc. announced it plans a C$25 million private placement of units.
The company will sell 13,888,888 units of one share and one half-share warrant at C$1.80 per unit. Each whole warrant will be exercisable at C$2.50 for two years.
As previously reported, expiry of the warrants may be accelerated to 30 days if the company's share price is at least C$0.75 for 20 consecutive trading days at any time more than four months after closing.
Union Securities Ltd. will be the agent and will receive a 7% cash commission and agent's compensation options equal to 8% of the number of units sold. Each agent's compensation option is exchangeable for one unit at C$1.80 apiece for two years.
Proceeds will be used for oil field acquisitions, development and general working capital.
Enhanced Oil, formerly Ridgeway Petroleum Corp., is a helium and carbon dioxide appraisal and development company based in Houston.
| Issuer: | Enhanced Oil Resources Inc.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$25 million
|
| Units: | 13,888,888
|
| Price: | C$1.80
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.50
|
| Agent: | Union Securities Ltd.
|
| Fees: | 7% cash commission; agent's compensation options equal to 8% of the number of units sold
|
| Pricing date: | Oct. 2
|
| Stock symbol: | TSX Venture: EOR
|
| Stock price: | C$1.83 at close Oct. 2
|
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