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Storm Cat Energy Closes Additional $5.0 Million Private Placement and Announces Additional Financing
Storm Cat Energy Closes Additional $5.0 Million Private Placement and Announces Additional Financing.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Alberta and DENVER, Dec. 5 /CNW/ -- Storm Cat\nEnergy Corporation (Amex: SCU; TSX: SME) today announced that, effective on\nNovember 30, it closed its private placement announced on November 21, 2005\nwith a single investor and existing shareholder. The private placement\nconsisted of the sale of 2,325,581 common shares of the Corporation at a price\nof U.S. $2.15 per share, resulting in gross proceeds to the Corporation of\nU.S. $5,000,000. In addition to the common shares, the investor will receive\na common share warrant exercisable for three tenths (3/10) of a common share,\nfor each common share purchased in the private placement; each full warrant\nwill be exercisable for a ending October 25, 2007 at an exercise price of U.S.\n$2.52 per share. In connection with the closing, the Corporation has paid the\nplacement agents fees in cash in the amount of U.S. $300,000.\nNone of the securities distributed under the Offering may be traded on the\nTSX Venture Exchange or otherwise sold in Canada or to or for the benefit of a\nresident of Canada before March 31, 2006 unless permitted under Canadian\nsecurities legislation and the rules of the TSX Venture Exchange.\nIn addition, Storm Cat today announced that it has entered into agreements\non a new financing to further augment its October 25th U.S. private placement\nwith a raise of an additional U.S. $2.50 million from two investors. Like the\nadditional financing that closed effective November 30, except for an\nadjustment in pricing to reflect recent market activity, this new financing\nwill be on terms substantially similar to those that applied to the October\n25th US private placement. This additional private placement will consist of\nthe sale of 992,063 common shares of the Corporation at a price of U.S. $2.52\nper share, resulting in gross proceeds to the Corporation of U.S. $2.50\nmillion. In addition to the common shares, the investors will receive common\nshare warrants exercisable for three tenths (3/10) of a common share, for each\ncommon share purchased; each full warrant will be exercisable until October\n25, 2007 at an exercise price of U.S. $2.97 per share. In connection with this\nnew financing, the Corporation has agreed to pay placement agent fees in cash\nin the amount of U.S. $150,000. The closing of this new financing is subject\nto the a...