Company intends to finance exploration and development of properties
By Devika Patel
Knoxville, Tenn., Oct. 7 - Vanoil Energy Ltd. said it raised C$2.27 million in the first tranche of a C$5 million non-brokered private placement of units. The deal priced Sept. 14.
The company is selling 10 million units of one common share and one half-share warrant at C$0.50 per unit. It sold 4.54 million units in the first tranche.
Each whole warrant will be exercisable at C$0.75 until Oct. 6, 2013. The strike price reflects a 50% premium to the Sept. 13 closing share price of C$0.50.
Proceeds will be used for exploration and development of the company's properties, including a planned seismic program in Kenya and Rwanda, and for general working capital purposes.
The oil and gas exploration company is based in Vancouver, B.C.
| Issuer: | Vanoil Energy Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$5 million
|
| Units: | 10 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Oct. 6, 2013
|
| Warrant strike price: | C$0.75
|
| Agent: | Non-brokered
|
| Pricing date: | Sept. 14
|
| Settlement date: | Oct. 7 (for C$2.27 million)
|
| Stock symbol: | TSX Venture: VEL
|
| Stock price: | C$0.50 at close Sept. 13
|
| Market capitalization: | C$15.32 million
|
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