Non-brokered, oversubscribed offering finances property development
By Devika Patel
Knoxville, Tenn., Dec. 31 - RedWater Energy Corp. said it settled a second tranche of a non-brokered private placement of units. The oversubscribed deal raised C$1.53 million on Dec. 24 and C$385,232 in the second tranche for a total of C$1.92 million.
The company sold 3,649,523 units of one flow-through common share and one half-share warrant at C$0.42 per unit in the first tranche and 917,220 units in the second for a total of 4,566,743 units.
Each whole warrant will be exercisable at C$0.60. The warrants sold in the first tranche are valid until Dec. 23, 2011, and the remaining warrants are exercisable until Dec. 31, 2011. The strike price represents a 46.34% premium to the Dec. 23 closing share price of C$0.41.
Proceeds will be used for further development of the company's core properties in the Redwater, Red Earth, Westlock and Fairydell-Bon Accord areas of Alberta.
RedWater Energy is a junior oil and gas exploration and development company based in Okotoks, Alta.
| Issuer: | RedWater Energy Corp.
|
| Issue: | Units of one flow-through common share and one half-share warrant
|
| Amount: | C$1,918,032
|
| Units: | 4,566,743
|
| Price: | C$0.42
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration dates: | Dec. 23, 2011, Dec. 31, 2011
|
| Warrant strike price: | C$0.60
|
| Agent: | Non-brokered
|
| Settlement dates: | Dec. 24 (for C$1,532,800), Dec. 31 (for C$385,232)
|
| Stock symbol: | TSX Venture: RED
|
| Stock price: | C$0.40 at close Dec. 24
|
| Market capitalization: | C$5.32 million
|
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