Deal has C$10.01 million greenshoe; proceeds fund drilling of wells
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Feb. 24 - WesternZagros Resources Ltd. said it priced a private placement of stock. The company plans to raise C$40.01 million on an overnight-marketed best-efforts basis in the deal, which was announced Wednesday.
The company will sell 83.35 million common shares at C$0.48 each. The price per share is a 2.04% discount to the Feb. 23 closing share price of C$0.49.
The deal will be conducted by an agent syndicate led by TD Securities Inc. and Scotia Capital Inc. and including Macquarie Capital Markets Canada Ltd., RBC Capital Markets and Stifel Nicolaus Canada Inc. The agents have a greenshoe for C$10.01 million.
According to Greg Stevenson, chief financial officer, over C$40 million has already been committed and while "just like any other company, you always want a higher share price," he said the funds would well-position the company through 2011.
"The funding we raised today will ensure we are funded right through those operations," he said, speaking of plans to drill at the Sarqala-1 re-entry well and the Mil Qasim-1 exploration well.
Proceeds will also be used for exploration on the company's oil and gas properties, for working capital and general corporate purposes.
Settlement is expected March 10.
WesternZagros is an oil and gas exploration and production company based in Calgary, Alta. All its assets are in the Kurdistan region of Iraq.
| Issuer: | WesternZagros Resources Ltd.
|
| Issue: | Common shares
|
| Amount: | C$40,008,000
|
| Greenshoe: | C$10,008,000
|
| Shares: | 83.35 million
|
| Price: | C$0.48
|
| Warrants: | No
|
| Agents: | TD Securities Inc. and Scotia Capital Inc. (leads), Macquarie Capital Markets Canada Ltd., RBC Capital Markets and Stifel Nicolaus Canada Inc.
|
| Announcement date: | Feb. 23
|
| Pricing date: | Feb. 24
|
| Settlement date: | March 10
|
| Stock symbol: | TSX Venture: WZR
|
| Stock price: | C$0.49 at close Feb. 23
|
| Market capitalization: | C$103.73 million
|
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