By Devika Patel
Knoxville, Tenn., June 27 - Forest Gate Resources Inc. said it has completed the second tranche of a C$1.75 million private placement of units, raising C$183,530. So far, the company has raised C$1.51 million.
The deal priced as a C$3 million units and stock deal on April 11; it was decreased and amended to include only units on June 2; the company took in C$1.33 million in the first tranche on June 2 as well.
Forest Gate is selling flow-through units at C$0.09 apiece and units at C$0.07 per unit. In the first tranche, it sold 2,222,221 flow-through units for C$199,999.89 and 16,111,430 units for C$1.13 million. It sold 1,378,112 flow-through units for C$124,030.08 and 850,000 units for C$59,500 in this tranche.
Each flow-through unit consists of one flow-through common share and one half-share warrant.
Each unit comprises one common share and one warrant.
Each whole warrant is exercisable at C$0.10 for two years.
The company had planned to sell $1.5 million in flow-through shares at C$0.13 per share and $1.5 million in units at C$0.10 apiece, or 15 million units.
Northern Securities Inc., the agent, has a greenshoe for 20%.
Proceeds will be used for general working capital purposes and the company's ongoing projects in Canada.
Based in Montreal, Forest Gate is an oil and gas exploration company.
| Issuer: | Forest Gate Resources Inc.
|
| Issue: | Units of one common share and one warrant; flow-through units of one flow-through common share and one half-share warrant
|
| Amount: | C$1.75 million
|
| Greenshoe: | For 20%
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Agent: | Northern Securities Inc.
|
| Pricing date: | April 11
|
| Revised: | May 29
|
| Settlement date: | June 2 (for C$1,327,800), June 27 (for C$183,530.08)
|
| Stock symbol: | TSX Venture: FGT
|
| Stock price: | C$0.10 at close April 10
|
|
|
| Flow-through units
|
| Price: | C$0.09
|
| Warrants: | One half-share warrant per unit
|
|
|
| Units
|
| Price: | C$0.07
|
| Warrants: | One warrant per unit
|
© 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.
