By Sheri Kasprzak
New York, June 15 - Richards Oil & Gas Ltd. said it plans to raise up to C$6.5 million from a private placement.
The offering includes five-year convertible debentures that bear interest at 8% annually.
The debentures are convertible into common shares at C$1.65 for the first two years, at C$1.82 in the third year; at C$2.00 in the fourth year and at C$2.20 in the fifth year.
Octagon Capital Corp. is the placement agent.
Proceeds will be used for land acquisition, exploration and development, as well as for general corporate purposes.
Calgary, Alta.-based Richards is an oil and natural gas exploration company.
| Issuer: | Richards Oil & Gas Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$6.5 million (maximum)
|
| Maturity: | Five years
|
| Coupon: | 8%
|
| Price: | Par
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| Yield: | 8%
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| Conversion price: | C$1.65 for the first two years; C$1.82 in the third year; C$2.00 for the fourth year; C$2.20 for the fifth year
|
| Warrants: | No
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| Placement agent: | Octagon Capital Corp.
|
| Pricing date: | June 15
|
| Stock symbol: | TSX Venture: RIX
|
| Stock price: | C$1.63 at close June 15
|
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