By Devika Patel
Knoxville, Tenn., Jan. 25 - Newton Energy Corp. raised C$305,000 from the third tranche of a private placement of subscription receipts, which is slated to raise up to C$5 million. The company took in C$2.44 million from the first tranche on Sept. 12 and C$606,000 in the second tranche on Nov. 30.
The first tranche consisted of 4,875,500 subscription receipts at C$0.50 apiece. The company sold 1,212,000 receipts in the second tranche and 610,000 receipts in this tranche.
Each subscription receipt will be automatically exchanged for one common share.
Of the subscription receipts, 15% will be exchanged upon closing. The remainder will be exchanged when the U.K. Department of Trade and Industry awards the company exploration licenses for at least 65,000 acres.
Proceeds will be used to fund the company's expected work commitments for the licenses.
Newton is an energy company based in Calgary, Alta. Newton hopes its stock will begin trading on the TSX Venture Exchange after it acquires the licenses, according to an Aug. 29 news release.
| Issuer: | Newton Energy Corp.
|
| Issue: | Subscription receipts exchangeable for common stock
|
| Amount: | C$5 million
|
| Subscription receipts: | 10 million
|
| Price: | C$0.50
|
| Warrants: | No
|
| Settlement dates: | Sept. 12 (for C$2,437,750), Nov. 30 (for C$606,000), Jan. 25 (for C$305,000)
|
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