Business
Storm Cat Energy Announces Additional Financing
Storm Cat Energy Announces Additional Financing.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Alberta and DENVER, Nov. 21 /CNW/ -- Storm Cat\nEnergy Corporation (Amex: SCU; TSX.V: SME) today announced that it has entered\ninto an agreement to augment its recent U.S. private placement that closed on\nOctober 25, 2005 with a raise of an additional U.S. $5 million from a single\ninvestor and existing shareholder.\nSuch investor participated in the Corporation's October 25th financing,\nand this new financing will be on the same terms and conditions as the October\n25th financing. This additional private placement will consist of the sale of\n2,325,581 common shares of the Corporation at a price of U.S. $2.15 per share,\nresulting in gross proceeds to the Corporation of U.S. $5 million. In\naddition to the common shares, the investor will receive a common share\nwarrant exercisable for three tenths (3/10) of a common share, for each common\nshare purchased each full warrant will be exercisable until October 25, 2007\nat an exercise price of U.S. $2.52 per share. In connection with this\nfinancing, the Corporation has agreed to pay placement agent fees in cash in\nthe amount of U.S. $300,000.\nThe closing of the financing is subject to the acceptance of the TSX\nVenture Exchange and satisfaction of customary terms and conditions.\nStorm Cat will use the net proceeds from the financing to further develop\nits exploration and drilling program in the Powder River Basin, Wyoming where\ntwo drilling rigs are active, in Elk Valley, British Columbia, Canada where\nthe second exploratory well is being drilled, and ongoing exploratory work in\nSaskatchewan, Canada and the Cook Inlet, Alaska.\nThis private placement will be covered by the same registration rights\nagreement entered into with respect to the October 25th financing and requires\nthe Corporation to file with the SEC a Registration Statement covering the\ncommon shares issued, including any common shares issued upon exercise of the\nwarrants, by December 31, 2005. If the Registration Statement is not filed by\nDecember 31, 2005 or is not declared effective by the SEC by April 20, 2006,\nthen the Corporation will be liable to make pro rata payments to each investor\nwho is a party thereto in an amount equal to 1.0% of the aggregate amount\ninvested by such investor for each 30-day period or pro rata for any portion\nthereof following such deadlines.\nThe s...