Placement expected to settle in multiple tranches over coming weeks
By Angela McDaniels
Tacoma, Wash., May 11 - Nordic Oil and Gas Ltd. will sell up to 10 million units for C$0.10 each through a non-brokered private placement totaling up to C$1 million.
Each unit consists of one flow-through class A common share and a half-share warrant, according to a company news release.
Each whole warrant is exercisable at C$0.12 for 18 months. This is a 50% premium over the company's C$0.08 closing share price on May 10.
The company said it expects to settle the placement in multiple tranches over the coming weeks.
The March 22 Canadian federal budget has proposed restricting the exemption from capital gains tax generally available for the donation of publicly listed flow-through shares to charities, Nordic said. The exemption will be available only to the extent that the capital gains realized exceed the original cost of all flow-through shares of the class issued to the donor.
"The budget is not expected to pass until sometime in June, so this new Nordic flow-through offering will be one of the last opportunities for someone to purchase flow-through shares and gift them to a registered charity," Nordic president Donald Benson said in the news release.
Nordic is a junior oil and gas company based in Winnipeg, Man.
| Issuer: | Nordic Oil and Gas Ltd.
|
| Issue: | Units of one flow-through class A common share and a half-share warrant
|
| Amount: | C$1 million
|
| Units: | 10 million
|
| Price: | C$0.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.12
|
| Agent: | Non-brokered
|
| Pricing date: | May 11
|
| Stock symbol: | TSX Venture: NOG
|
| Stock price: | C$0.08 at close May 10
|
| Market capitalization: | C$7.34 million
|
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