By Angela McDaniels
Tacoma, Wash., May 26 - Forest Gate Resources Inc. expects to close a non-brokered private placement of units for C$500,000 to C$2.5 million, according to a company news release.
Each unit will consist of one common share and one warrant.
The subscription price for each Forest Gate share will equal the average closing price of Forest Gate's shares for the four trading days ending on Friday, minus the maximum discount permitted by the TSX Venture Exchange.
Each warrant will be exercisable into one common share for two years at an exercise price of C$0.20.
After the expiration of a four-month hold period, the company will be able to force the exercise of the warrants if its common shares close at or above an average closing price of C$0.40 for 20 consecutive trading days.
The proceeds will be used to increase working capital and finance Forest Gate's operations in Texas related to its plans to acquire 90% of the shares of Atlantis Deepwater Production, Inc. and 90% of the securities of Impact Exploration & Production, LLC.
The financing is expected to be completed concurrently with the acquisitions, which are expected to close by June 5.
Forest Gate Resources an oil and gas exploration and production company based in Montreal.
| Issuer: | Forest Gate Resources Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$500,000 to C$2.5 million
|
| Price: | Average of closing stock price for four days ending May 29
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.20
|
| Agent: | Non-brokered
|
| Pricing date: | May 25
|
| Settlement date: | On or before June 5
|
| Stock symbol: | TSX Venture: FGT
|
| Stock price: | C$0.03 at close May 25
|
© 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.
