E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 5/21/2010 in the Prospect News PIPE Daily.

New Issue: Velo Energy wraps C$8.25 million units sale with C$4.65 million tranche

By Devika Patel

Knoxville, Tenn., May 21 - Velo Energy Inc. said it raised C$4.65 million in the second and final tranche of an C$8.25 million non-brokered private placement of units. The deal priced for C$6 million May 5, and the company took in C$3.6 million in the first tranche on May 14.

The company sold 27,490,315 units of one common share and one half-share warrant at C$0.30 per unit. It sold 12 million units in the first tranche and 15,490,315 units in this one. The whole warrants are exercisable at C$0.50 for 18 months.

Proceeds will be used for working capital.

Velo is an oil and gas company based in Calgary, Alta.

Issuer:Velo Energy Inc.
Issue:Units of one common share and one half-share warrant
Amount:C$8,247,095
Units:27,490,315
Price:C$0.30
Warrants:One half-share warrant per unit
Warrant expiration:18 months
Warrant strike price:C$0.50
Agent:Non-brokered
Pricing date:May 5
Settlement date:May 14 (for C$3.6 million), May 21 (for C$4,647,095)
Stock symbol:TSX Venture: VLO
Stock price:C$0.33 at close May 5
Market capitalization:C$20.6 million

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.