By Sheri Kasprzak
New York, Aug. 31 - Richards Oil & Gas Ltd. said it plans to raise up to C$10 million in a two-part private placement.
The first portion of the deal includes 4 million units at C$0.75 each for proceeds of C$3 million.
The units are comprised of one share and one half-share warrant. The whole warrants allow for the purchase of an additional share at C$1.00 each for one year and C$1.25 for the remaining six months.
The second portion of the offering includes a combination of units at C$0.75 each and flow-through shares at C$1.00 each for proceeds of up to C$7 million.
Placement agent Octagon Capital Corp. has an over-allotment option for up to 2.5 million additional flow-through shares, exercisable for up to two days before closing. The agent also has an over-allotment option for up to 10% of the entire offering, exercisable for up to 60 days before closing.
The proceeds will be used for exploration and development. The remainder will be used for working capital.
Based in Calgary, Alta., Richards is an oil and natural gas exploration company.
First issue
| Issuer: | Richards Oil & Gas Ltd.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$3 million
|
| Units: | 4 million
|
| Price: | C$0.75
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.00 for the first year; C$1.25 for remaining six months
|
| Placement agent: | Octagon Capital Corp.
|
| Pricing date: | Aug. 31
|
| Stock price: | C$0.82 at close Aug. 30
|
|
|
| Second issue
|
| Issuer: | Richards Oil & Gas Ltd.
|
| Issue: | Flow-through shares and units of one share and one half-share warrant
|
| Amount: | C$7 million
|
| Greenshoe: | For up to 2.5 million extra flow-through shares and up to 10% of the entire offering
|
| Price: | C$1.00 for flow-through shares and C$0.75 for units
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$1.00 for first year; C$1.25 for remaining six months
|
| Placement agent: | Octagon Capital Corp.
|
| Pricing date: | Aug. 31
|
| Stock price: | C$0.82 at close Aug. 30
|
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