Proceeds slated for expansion, acceleration of Exall's capital program
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Feb. 2 - Exall Energy Corp. announced that it has settled a private placement of special warrants on Tuesday.
The deal priced for C$10 million with a C$1.5 million greenshoe on Jan. 10 and raised the full C$11.5 million via lead agent Dundee Securities Corp. along with Clarus Securities Inc., Stonecap Securities Inc. and D&D Securities Inc.
The company sold 5.75 million warrants at C$2.00 each, reflecting a 6.98% discount to C$2.15, the company's closing share price on Jan. 10. Of the special warrants, 750,000 were part of the fully exercised greenshoe.
Each special warrant will entitle the holder to receive one common share.
The warrants are exercisable by holders at any time, and any unexercised special warrants will be deemed to be exercised on the earlier of four months and a day following closing and the first business day after a final prospectus is filed for the shares issuable upon exercise.
Frank S. Rebeyka, vice chairman and chief executive officer, told Prospect News that the warrants "took about 15 minutes to sell." So many investors were "clamoring for a piece of the pie" that "not everybody that wanted a piece got it."
Given that, Rebeyka said the company felt "pretty good, actually."
"We've got a pretty decent cash flow now from production. The next step will be to exploit the remainder of the pool [of exploration projects] and get cash flow up a little bit."
Though the funds raised in the financing are likely not enough to last through the year, Rebeyka said he expects that cash flow will be enough to supplement the company's coffers, making the company "less dependant on any future financings."
Proceeds are earmarked for the expansion and acceleration of Exall's capital program for the development of its Gilwood light oil exploration and development project in Mitsue, Alta., to reduce outstanding bank debt and for general corporate purposes.
Based in Calgary, Alta., Exall is a junior oil and gas company.
| Issuer: | Exall Energy Corp.
|
| Issue: | Special one-share warrants
|
| Amount: | C$11.5 million (including C$1.5 million greenshoe)
|
| Warrants: | 5.75 million
|
| Price: | C$2.00
|
| Agents: | Dundee Securities Corp. (lead); Clarus Securities Inc., Stonecap Securities Inc. and D & D Securities Inc.
|
| Pricing date: | Jan. 10
|
| Settlement date: | Feb. 1
|
| Stock symbol: | Toronto: EE
|
| Stock price: | C$2.15 at close Jan. 10
|
| Market capitalization: | C$108.29 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
