New York, Nov. 5 - Result Energy Inc. said it plans to offer up to C$26 million of units in a non-brokered private placement as part of a reorganization and recapitalization.
The company will also have a new management team and board of directors, and will carry out a rights offering to current shareholders.
Result's new managers formerly led TriStar Oil & Gas Ltd.
As part of the changes, shareholders will be asked to approve a name change to TOG Oil & Gas Ltd.
Under the private placement, the new management team along with subscribers they identify will buy up to 58,823,529 units at C$0.34 each and third-party investors will buy up to 70,588,235 common shares at C$0.085 each.
Each unit will be made up of three common shares, one flow-through share and four share purchase warrants exercisable at C$0.11 for five years. One third of the warrants will become exercisable when the 20-day weighted average trading price of the company's stock reaches C$0.17, one third at C$0.21 and the final third at C$0.25.
The new management team will be led by Brett Herman as president and chief executive officer, Jason Zabinsky as vice president of finance and chief financial officer, Graham Kidd as vice president of Engineering, Eric Strachan as vice president of exploration, Jeremy Wallis as vice president of land, Mike Wihak as vice president of operations, and Filippo Angelini as controller.
Result is a Calgary, Alta., oil and gas company.
| Issuer: | Result Energy Inc.
|
| Issue: | Units of three common shares, one flow-through share and four share purchase warrants, common shares
|
| Amount: | C$26 million
|
| Announcement date: | Nov. 5
|
| Stock symbol: | TSX Venture: RTE
|
| Stock price: | C$0.105 at close Nov. 5
|
| Market capitalization: | C$8.98 million
|
|
|
| Units
|
| Amount: | C$20 million
|
| Units: | 58,823,529
|
| Price: | C$0.34
|
| Warrants: | For 235,294,116 shares
|
| Warrant strike price: | C$0.11
|
| Warrant expiration: | 5 years
|
|
|
| Common shares
|
| Amount: | C$6 million
|
| Price: | C$0.085
|
| Warrants: | No
|
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