By Marisa Wong
Milwaukee, May 5 - Velo Energy Inc. will conduct a non-brokered private placement of units to raise up to C$6 million, according to a news release.
The company plans to sell up to 20 million units priced at C$0.30 each.
Each unit will consist of one common share and one half-share warrant. Each whole warrant will entitle the holder to acquire one common share at an exercise price of C$0.50 for 18 months from the closing date of the offering.
The placement will close on May 14.
Proceeds will be used for working capital, including payment of liabilities incurred for acquisitions in the U.K. North Sea, and for general corporate purposes.
Management and employees of the company intend to participate for approximately 10% of the offering.
Based in Calgary, Alta., Velo explores, develops and produces natural gas and oil.
Issuer: | Velo Energy Inc.
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Issue: | Units of one common share and one half-share warrant
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Amount: | Up to C$6 million
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Units: | Up to 20 million
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Price: | C$0.30
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Warrants: | One half-share warrant per unit
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Warrant expiration: | 18 months
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Warrant strike price: | C$0.50
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Announcement date: | May 5
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Settlement date: | May 14
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Agent: | Non-brokered
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Stock symbol: | TSX Venture: VLO
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Stock price: | C$0.34 at close May 4
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Market capitalization: | C$21.98 million
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