By Devika Patel
Knoxville, Tenn., April 14 - Traxion Energy Inc. said it has increased a brokered private placement of shares and units with Mackie Research Capital Corp. to C$5 million from C$4.5 million. Also, concurrent with the brokered placement, the company plans to raise another C$2.5 million by way of a non-brokered offering, which originally was slated to raise C$2 million. Both deals priced April 14.
In the brokered deal, the company will now sell 17.5 million flow-through common shares at C$0.20 each for C$3.5 million. Traxion also will sell 8,333,334 units at C$0.18 apiece for C$1.5 million.
In the non-brokered offering, Traxion will sell issue up to an additional 13,888,889 units or flow-through shares or combination.
Each unit will consist of one share and one half-share warrant, with each whole warrant exercisable at C$0.25 for one year.
Originally, Traxion planned to sell 15 million flow-through common shares in the borkered deal plus 8,333,334 units along with an additional 11,111,111 units or flow-through shares or a combination in the non-brokered portion.
Settlement is expected May 4.
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.
Calgary, Alta.-based Traxion Energy is a junior oil and gas company.
| Issuer: | Traxion Energy Inc.
|
| Issue: | Flow-through common shares, units of one share and one half-share warrant
|
| Amount: | C$7.5 million
|
| Agents: | Mackie Research Capital Corp. (for C$5 million), non-brokered (for C$2.5 million)
|
| Pricing date: | April 14
|
| Upsized: | April 15
|
| Settlement date: | May 4
|
| Stock symbol: | TSX Venture: TXE
|
| Stock price: | C$0.195 at close April 13
|
| Market capitalization: | C$15.2 million
|
|
|
| Brokered offering
|
| Flow-through shares
|
| Amount: | C$3.5 million
|
| Shares: | 17.5 million
|
| Price: | C$0.20
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$1.5 million
|
| Units: | 8,333,334
|
| Price: | C$0.18
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.25
|
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