Offering will sell 166,666,667 units at C$0.15 apiece to Ringo Holding
By Devika Patel
Knoxville, Tenn., July 27 - Estrella International Energy Services Ltd. said it has received shareholder approval for a C$25 million private placement of units with Ringo Holding LP. The deal priced on June 26.
The company will sell 166,666,667 units of one common share and 0.4 warrants at C$0.15 per unit. Each whole warrant will be exercisable at C$0.15 for 18 months. The strike price is an 87.5% premium to the June 25 closing share price of C$0.08.
Proceeds will be used to repay $10 million of debt under the company's credit facility with Credit Suisse AG, to reduce other debt and for working capital reserves to assist with new project start-ups in Latin America.
The oilfield services company is based in Calgary, Alta.
| Issuer: | Estrella International Energy Services Ltd.
|
| Issue: | Units of one common share and 0.4 warrants
|
| Amount: | C$25 million
|
| Units: | 166,666,667
|
| Price: | C$0.15
|
| Warrants: | 0.4 warrants per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.15
|
| Investor: | Ringo Holding LP
|
| Pricing date: | June 26
|
| Stock symbol: | TSX Venture: EEN
|
| Stock price: | C$0.08 at close June 25
|
| Market capitalization: | C$13.28 million
|
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