Orient Group, Leisuo Trading buy units; proceeds to fund capital program
By Devika Patel
Knoxville, Tenn., Nov. 24 - Falcon Oil & Gas Ltd. said it plans a C$63 million private placement of units. Orient Group Energy Investment Holding Co Ltd. and Leisuo Trading Holding Co. are among the investors.
The company will sell the units at C$0.15 apiece. The units consist of one common share and a three-quarters-share warrant, with each whole warrant exercisable at C$0.18 for three years.
The price per unit represents an 18% premium to the last month's average trading price. The warrant strike price is a 12.5% premium to the Nov. 23 closing share price of C$0.16 and a 20% premium to the per unit price.
Proceeds will be used to fund Falcon's ongoing capital program and for general corporate purposes.
"We are pleased to be making this investment in Falcon after careful technical and corporate study," Orient Group executive director Zhang Xian Feng said in a press release.
"We believe Falcon has great potential to unlock value with this proper capitalization. We are long-term investors and believe we have the resources to help Falcon continue to grow in the future, either through joint ventures at the asset level with our energy concern or additional investments in Falcon."
"This is an exciting time for the company, with the focus shifting over the near term towards achieving production tests in some of the high-potential targets on our acreage in Australia and Hungary, while advancing our understanding of our recently applied-for exploration license in South Africa," Falcon president and chief executive officer Robert Macaulay added in the release.
Falcon is an oil and natural gas exploration and development company based in Toronto.
| Issuer: | Falcon Oil & Gas Ltd.
|
| Issue: | Units of one common share and a three-quarters-share warrant
|
| Amount: | C$63 million
|
| Price: | C$0.15
|
| Warrants: | One three-quarters-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.18
|
| Investors: | Orient Group Energy Investment Holding Co Ltd. and Leisuo Trading Holding Co.
|
| Pricing date: | Nov. 24
|
| Stock symbol: | TSX Venture: FO
|
| Stock price: | C$0.16 at close Nov. 23
|
| Market capitalization: | C$93.34 million
|
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