Deal conducted on a commercially reasonable efforts basis by Wolverton
By Devika Patel
Knoxville, Tenn., Sept. 8 - Red Rock Energy Inc. said it has arranged a private placement of units and stock to raise between C$2.5 million and C$5.6 million on a commercially reasonable efforts basis.
The company will sell up to 30,666,667 units of one common share and one warrant at C$0.15 per unit and up to 5,555,556 flow-through common shares at C$0.18 per share. At least C$2 million of units will be sold.
The price per share represents a 24.14% premium to C$0.145, the Sept. 7 closing share price. Each 18-month warrant is exercisable at C$0.25, a 72.41% premium to the Sept. 7 closing price.
Wolverton Securities Ltd. is the agent.
Proceeds will be used to continue development of the petroleum exploration project in northeastern British Columbia. A portion of the funds will also be used for general corporate purposes.
Based in Calgary, Alta., Red Rock Energy is a development-stage uranium exploration company.
| Issuer: | Red Rock Energy Inc.
|
| Issue: | Units of one common share and one warrant, flow-through common shares
|
| Amount: | C$2.5 million (minimum), C$5.6 million (maximum)
|
| Agent: | Wolverton Securities Ltd.
|
| Pricing date: | Sept. 8
|
| Stock symbol: | TSX Venture: RRK
|
| Stock price: | C$0.145 at close Sept. 7
|
| Market capitalization: | C$6.38 million
|
|
|
| Units
|
| Amount: | C$2 million (minimum), C$4.6 million (maximum)
|
| Units: | 30,666,667 (maximum)
|
| Price: | C$0.15
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.25
|
|
|
| Shares
|
| Amount: | C$1 million (maximum)
|
| Shares: | 5,555,556 (maximum)
|
| Price: | C$0.18
|
| Warrants: | No
|
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