By Devika Patel
Knoxville, Tenn., Dec. 21 - Torrential Energy Ltd. said it has pocketed C$10,000 in the second tranche of a C$3 million private placement of units and stock. The placement priced on Oct. 3, and the company raised C$344,000 in the first tranche on Nov. 15.
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-form offering document. The rest of the issue will be the private placement.
In this tranche, the company sold 25,000 flow-through shares for C$10,000. As part of the short-form offering, it also sold an additional 485,000 units for C$145,500 and 134,000 flow-through shares for C$53,600.
In the first 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-form 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 stock sale.
Leede Financial Markets Inc. is the agent. For the first 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. For this tranche, Leede was paid an 8% commission and warrants to buy 48,500 common shares at C$0.30 per share and 15,900 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
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| Amount: | C$3 million (maximum)
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| Agent: | Leede Financial Markets Inc.
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| Fees: | 8%, warrants to purchase 697,005 shares
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| Pricing date: | Oct. 3
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| Settlement dates: | Nov. 15 (for C$344,000), Dec. 21 (for C$10,000)
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| Stock symbol: | TSX Venture: TNL
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| Stock price: | C$0.24 at close Oct. 3
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| Units
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| Price: | C$0.30
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | One year
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| Warrant strike price: | C$0.45
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| Shares
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| Price: | C$0.40
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