By Sheri Kasprzak
New York, Jan. 19 - TriStar Oil & Gas Ltd. said it intends to raise C$44.02 million in a private placement as part of its merger with Sawtooth International Resources Inc.
TriStar plans to sell 5.68 million subscription receipts at C$7.75 each through a syndicate of underwriters co-led by Orion Securities Inc. and FirstEnergy Capital Corp.
The syndicate also includes BMO Nesbitt Burns Inc., GMP Securities Ltd., Tristone Capital Inc., Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., Blackmont Capital Inc., Canaccord Capital Corp. and Haywood Securities Inc.
The proceeds from the offering will be held in escrow until the merger is completed. When the merger is settled, the receipts will be exchanged on a one-for-one basis for shares of TriStar.
The private placement is slated to close on Feb. 17.
Under the merger terms, TriStar will purchase all of the outstanding shares of Sawtooth at C$2.25 each in cash or 0.2903 shares of TriStar for every share of Sawtooth. A total of 3.6 million shares of TriStar will be issued to shareholders of Sawtooth.
Based in Calgary, Alta., TriStar is an oil and natural gas exploration company.
| Issuer: | TriStar Oil & Gas Ltd.
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| Issue: | Subscription receipts exchangeable for common stock
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| Amount: | C$44.02 million
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| Subscription receipts: | 5.68 million
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| Price: | C$7.75
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| Warrants: | No
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| Underwriters: | Orion Securities Inc. (lead), FirstEnergy Capital Corp. (lead), BMO Nesbitt Burns Inc., GMP Securities Ltd., Tristone Capital Inc., Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., Blackmont Capital Inc., Canaccord Capital Corp. and Haywood Securities Inc.
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| Pricing date: | Jan. 19
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| Settlement date: | Feb. 17
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| Stock symbol: | Toronto: TOG
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| Stock price: | C$7.98 at close Jan. 18
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