In related news, two board directors to be replaced by Said, Bharti
By Susanna Moon
Chicago, Oct. 25 - Exile Resources Inc. said it plans to complete a non-brokered private placement of up to 20.1 million units at C$0.12 each, with each unit consisting of one common share and one warrant, for proceeds of C$2.41 million.
Each warrant is exercisable for 18 months at C$0.25 per share. The strike price represents a 78.57% premium to the C$0.14 closing share price on Oct. 22.
Exile may accelerate the expiry to 30 days following notice, if after four months and one day following issuance of the warrants the company's closing price exceeds C$0.50 for any 30 consecutive trading days.
In connection with the deal, Roderick de Courcy-Ireland and John Orange are expected to resign from the board of directors. They will be replaced by Ahmed Said and Stan Bharti.
Bharti is president of Forbes & Manhattan, Inc. and the chairman of Forbes Energy Group and is expected to become non-executive chairman.
Said is the chief executive officer of Forbes Energy Group and his background includes operational and senior management roles in the oil and gas industry.
Toronto-based Exile is an oil and natural gas exploration company.
| Issuer: | Exile Resources Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$2,412,000
|
| Units: | 20.1 million
|
| Price: | C$0.12
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.25
|
| Agent: | Non-brokered
|
| Pricing date: | Oct. 25
|
| Stock symbol: | Canada: ERI
|
| Stock price: | C$0.14 at close Oct. 22
|
| Market capitalization: | C$9.07 million
|
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