Jacob Securities assists in selling flow-through shares, common shares
By Devika Patel
Knoxville, Tenn., Nov. 28 - Reef Resources Ltd. said it raised C$1.69 million in the first tranche of a C$2.5 million private placement of stock and units on Nov. 24. The deal priced for C$2 million on Oct. 13 and was revised on Nov. 2.
The company is selling flow-through common shares at C$0.11 per share and units of one common share and a half-share warrant at C$0.10 per unit. It sold 900,000 units and 14,524,781 shares in the first tranche.
Each warrant is exercisable at C$0.25 for one year.
The price per flow-through common share represents a 10% premium to C$0.10, the Oct. 12 closing share price. The warrant strike price is a 150% premium to that price.
The deal is being conducted by lead agent Jacob Securities Inc. Solo Oil plc will invest C$1.5 million.
Proceeds will be used to complete two additional wells in the Ausable pinnacle reef, tie-in an existing standing gas well in the Airport South reef, acquire pressurization natural gas for recycling in the Ausable reef and execute a field optimization program as well as for general working capital.
Based in Calgary, Alta., Reef Resources is an oil and gas company.
| Issuer: | Reef Resources Ltd.
|
| Issue: | Flow-through common shares, units of one common share and a half-share warrant
|
| Amount: | C$2.5 million
|
| Agent: | Jacob Securities Inc. (lead)
|
| Investor: | Solo Oil plc (for C$1.5 million)
|
| Pricing date: | Oct. 13
|
| Revised: | Nov. 2
|
| Settlement date: | Nov. 24 (for C$1,687,726)
|
| Stock symbol: | TSX Venture: REE
|
| Stock price: | C$0.10 at close Oct. 12
|
| Market capitalization: | C$3.75 million
|
|
|
| Flow-through common shares
|
| Price: | C$0.11
|
| Warrants: | No
|
|
|
| Units
|
| Price: | C$0.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.25
|
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