By Devika Patel
Knoxville, Tenn., Nov. 15 - Torrential Energy Ltd. said it has raised C$344,000 in the first tranche of a C$3 million private placement of units and stock. The placement priced on Oct. 3.
The deal is being conducted as part of an issue of units and stock for at least C$1.8 million and up to C$3 million in which up to C$2 million of the issued securities will be sold in a short-term offering document. The rest of the issue will be the private placement.
In this tranche, the company sold 35,000 units for C$14,000 and 825,000 flow-through shares for C$330,000. As part of the short-term offering, it also sold an additional 1,319,000 shares for C$527,600 and 4,147,050 units for C$1,244,115, for a total of C$1,771,715.
As previously reported, the company will sell flow-through shares at C$0.40 apiece and units of one share and one half-share warrant at C$0.30 per unit. Each whole warrant will be exercisable at C$0.45 for one year.
No more than C$1 million of the proceeds will be derived from the share sale.
Leede Financial Markets Inc. is the agent. For this tranche, Leede received an 8% commission and was granted one-year warrants to purchase 418,205 common shares at C$0.30 per share and 214,400 shares at C$0.40 per share.
Proceeds will be used for the development of Torrential's oil and gas properties and for working capital.
Torrential is a Calgary, Alta.-based capital pool company.
| Issuer: | Torrential Energy Ltd.
|
| Issue: | Flow-through shares, units of one share and one half-share warrant
|
| Amount: | C$3 million (maximum)
|
| Agent: | Leede Financial Markets Inc.
|
| Pricing date: | Oct. 3
|
| Stock symbol: | TSX Venture: TNL
|
| Stock price: | C$0.24 at close Oct. 3
|
|
|
| First tranche
|
| Amount: | C$344,000
|
| Fees: | 8%, warrants to purchase 632,605 shares
|
| Settlement date: | Nov. 15
|
|
|
| Units
|
| Amount: | C$14,000
|
| Units: | 35,000
|
| Price: | C$0.30
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.45
|
|
|
| Shares
|
| Amount: | C$330,000
|
| Shares: | 825,000
|
| Price: | C$0.40
|
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