By Devika Patel
Knoxville, Tenn., April 29 - Azabache Energy Inc. said it has priced a C$6.5 million private placement of units that will be conducted by Toll Cross Securities Inc. and Jennings Capital Inc. as co-lead agents, along with Lightyear Capital Inc. The deal was announced Feb. 8, but originally was to include only stock.
The company will sell units at C$0.21 apiece. Each unit will consist of one common share and one half-share warrant, with each whole warrant exercisable at C$0.30 for two years. There is a C$3.5 million greenshoe.
Settlement is expected May 13.
Proceeds will be used for drilling, coring and logging a number of wells on recently purchased lands in west central Alberta. The remainder will be used for general corporate purposes and to increase production on the Saskatchewan oil bearing properties.
Azabache is a petroleum and natural gas exploration company based in Toronto.
| Issuer: | Azabache Energy Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$6.5 million
|
| Greenshoe: | C$3.5 million
|
| Price: | C$0.21
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agents: | Toll Cross Securities Inc. and Jennings Capital Inc. (co-leads), Lightyear Capital Inc.
|
| Announcement date: | Feb. 8
|
| Pricing date: | April 29
|
| Settlement date: | May 13
|
| Stock symbol: | TSX Venture: AZA
|
| Stock price: | C$0.23 at close April 29
|
| Market capitalization: | C$1.63 million
|
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