Rancher Energy penalized for missing registration statement deadline

By Laura Lutz

Des Moines, Sept. 18 - Rancher Energy Corp. issued another $794,000 in common stock because a registration statement covering shares issued in a December 2006 private placement has not been declared effective, according to an 8-K filing with the Securities and Exchange Commission.

The company issued 2,467,484 shares on Sept. 17 to satisfy the penalty.

The shares were priced at about $0.32 each, or 90% of the volume-weighted average price of the company's stock for the 10 trading days before the payment date.

The private placement closed on Dec. 21, 2006 and the registration statement was required to be declared effective within 150 days of closing.

Having missed that deadline, Rancher is required to make payments of $794,000 to the holders of shares from that offering for every 30 days that no registration statement has been declared effective.

On June 25, the company issued $794,000 of stock, priced at about $0.84 per share, as a penalty for not having filed the registration statement. Before June 25, the company had issued 933,458 shares in penalty.

Denver-based Rancher Energy evaluates older oil and gas fields to determine potential secondary and tertiary recovery.

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