Proceeds used to complete three conventional wells without fracturing
By Toni Weeks
San Diego, May 16 - Petrolia Inc. said it raised a total of C$15.75 million in a private placement of units, which consisted of both a brokered and non-brokered component.
The company sold 7,042,254 units of one common share and one half-share warrant at C$1.42 per unit to investor 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 raised C$5.75 million by selling 4,049,298 units at the same price on a bought-deal basis through underwriters Laurentian Bank Securities Inc. and National Bank Financial Inc. Of the amount, C$750,001 represented the fully exercised greenshoe.
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$15,750,003 (including C$750,001 greenshoe)
|
| Units: | 11,091,552 (7,042,254 in non-brokered deal; 4,049,298 in brokered deal)
|
| Price: | C$1.42
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.78
|
| Underwriters: | Laurentian Bank Securities Inc. and National Bank Financial Inc. (for C$5,750,003)
|
| Investor: | Investissement Quebec (for C$10 million)
|
| Pricing date: | April 17
|
| Settlement date: | May 16
|
| Stock symbol: | TSX Venture: PEA
|
| Stock price: | C$1.49 at close April 16
|
| Market capitalization: | C$81.83 million
|
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