Proceeds used to complete three conventional wells without fracturing
By Devika Patel
Knoxville, Tenn., April 17 - Petrolia Inc. said it priced a C$10 million private placement of units with investor Investissement Quebec. It also plans a C$5 million brokered placement of identical units.
The company will sell 7,042,254 units of one common share and one half-share warrant at C$1.42 per unit to Investissement Quebec. Each whole warrant will be exercisable at C$1.78 for three years. The strike price reflects a 19.46% premium to the April 16 closing share price of C$1.49.
Petrolia also plans to offer 3,521,128 units at the same price through a C$5 million private placement on a bought-deal basis through agents Laurentian Bank Securities Inc. and National Bank Financial Inc. The brokered sale will have a C$750,001 greenshoe.
Settlement of both deals is expected May 15.
Proceeds will be used primarily to complete three conventional wells without fracturing, two on the company's Bourque project and one in the Haldimand field, as well as for general corporate purposes.
Petrolia is an oil and gas company based in Rimouski, Quebec.
| Issuer: | Petrolia Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$15 million
|
| Greenshoe: | C$750,001
|
| Units: | 10,563,382
|
| Price: | C$1.42
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.78
|
| Agent: | Laurentian Bank Securities Inc. and National Bank Financial Inc. (for C$5 million)
|
| Investor: | Investissement Quebec (for C$10 million)
|
| Pricing date: | April 17
|
| Settlement date: | May 15
|
| Stock symbol: | TSX Venture: PEA
|
| Stock price: | C$1.49 at close April 16
|
| Market capitalization: | C$81.83 million
|
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