Company intends to finance exploration and development of properties
By Devika Patel
Knoxville, Tenn., Aug. 10 - Vanoil Energy Ltd. said it settled a C$4.99 million non-brokered private placement of units. The deal priced for C$20 million on June 18.
The company sold 8,317,484 units of one common share and one warrant at C$0.60 per unit.
Each two-year warrant is exercisable at C$1.00. The strike price reflects a 33.33% premium to the June 15 closing share price of C$0.75.
Proceeds will be used for exploration and development of the company's Kenyan oil and gas properties, completion of a production sharing agreement with the Republic of Rwanda and for general working capital purposes.
"This round of funding is important, as it enables the company to continue its aggressive exploration and begin mobilization in preparation for its Q1 2013 drill program," president and chief executive officer James Passin said in a press release.
The oil and gas exploration company is based in Vancouver, B.C.
| Issuer: | Vanoil Energy Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$4,990,490
|
| Units: | 8,317,484
|
| Price: | C$0.60
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.00
|
| Agent: | Non-brokered
|
| Pricing date: | June 18
|
| Pricing date: | Aug. 10
|
| Stock symbol: | TSX Venture: VEL
|
| Stock price: | C$0.75 at close June 15
|
| Market capitalization: | C$26.44 million
|
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