Proceeds could liquidate convertible debentures and promissory notes
By Devika Patel
Knoxville, Tenn., March 7 - Valparaiso Energy Inc. said it plans a non-brokered private placement of units. The deal will raise C$1.5 million.
The company will sell 30 million units at C$0.05 apiece. Each unit consists of one common share and one warrant, with each one-year warrant exercisable at C$0.10. The strike price reflects a 42.86% premium to the March 4 closing share price of C$0.07.
Proceeds will be used for outstanding operating liabilities, year-end audit requirement costs and working capital requirements for the next several months. In addition, proceeds also may be used to liquidate convertible debentures and promissory notes.
Valparaiso is a Calgary, Alta.-based oil and gas exploration company.
| Issuer: | Valparaiso Energy Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1.5 million
|
| Units: | 30 million
|
| Price: | C$0.05
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
| Pricing date: | March 7
|
| Stock symbol: | NEX: VPO.H
|
| Stock price: | C$0.07 at close March 4
|
| Market capitalization: | C$1.09 million
|
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