By Devika Patel
Knoxville, Tenn., July 17 - Rochester Energy Corp. announced that it has closed its oversubscribed private placement of subscription receipts for C$11.4 million.
The company sold 8,299,100 subscription receipts exchangeable for units at C$0.75 apiece and 6,443,874 subscription receipts which will be exchanged automatically for flow-through shares at C$0.80 apiece.
The units consisted of one non flow-through share and one half-share warrant. Each whole warrant is exercisable for one non flow-through share at C$1.00 for two years.
Westwind Partners Inc. and PowerOne Capital Markets Limited were the agents.
Approximately $5.7 million of the proceeds, comprised of 50% of the unit subscription receipts and 50% of the flow-through subscription receipts, were exchanged into units and flow-through shares upon closing.
The balance of the proceeds is to remain in trust with Valiant Trust Company until the release conditions are met, after which, the remaining subscription receipts will be exchanged automatically into units and flow-through shares.
The release conditions require that the agents receive a compliant resource assessment report and that Rochester Energy's shares be listed on the TSX Venture Exchange.
If the release conditions are not met, the escrowed subscription receipts will be cancelled and the remaining 50% of the proceeds, plus interest, will be refunded to the subscribers.
Rochester plans to use the net proceeds to advance its oil sands projects and for general corporate purposes.
Rochester is an oil and gas company based in Calgary, Alta.
| Issuer: | Rochester Energy Corp.
|
| Issue: | Subscription receipts exchangeable for units of one non flow-through share and one half-share warrant; subscription receipts exchangeable for one flow-through share
|
| Amount: | C$11.4 million
|
| Agents: | Westwind Partners Inc., PowerOne Capital Markets Ltd.
|
| Pricing date: | June 14
|
| Settlement date: | July 17
|
|
|
| Unit subscription receipts
|
| Subscription receipts: | 8,299,100
|
| Price: | C$0.75
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.00
|
|
|
| Flow-through subscription receipts
|
| Subscription receipts: | 6,443,874
|
| Price: | C$0.80
|
| Warrants: | No
|
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