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Storm Cat Energy Closes U.S. $2.5 Million Private Placement
Storm Cat Energy Closes U.S. $2.5 Million Private Placement.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Alberta and DENVER, Dec. 22 /CNW/ -- Storm Cat\nEnergy Corporation (Amex: SCU; TSX.V: SME) today announced that it has closed\nits private placement previously announced on December 5, 2005. The private\nplacement consisted of the sale of 992,063 common shares of the Corporation at\na price of U.S. $2.52 per share, resulting in gross proceeds to the\nCorporation of approximately U.S. $2,500,000. In addition to the common\nshares, the investors will receive common share warrants exercisable for\nthree-tenths (3/10) of a common share, for each common share purchased in the\nprivate placement. Each full warrant will be exercisable until October 25,\n2007 at an exercise price of U.S. $2.97 per share. In connection with the\nclosing, the Corporation has paid the placement agents' fees in cash in the\namount of U.S. $150,000.\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 April 22, 2006 unless permitted under Canadian\nsecurities legislation and the rules of the TSX Venture Exchange.\nThe securities offered in the above-described private placement have not\nbeen registered under the United States Securities Act of 1933 or any state\nsecurities laws, and unless so registered may not be offered or sold in the\nUnited States, except pursuant to an exemption from, or in a transaction\nsubject to, the registration requirements of the Securities Act of 1933 and\napplicable state securities laws.\nThe Corporation and the investors in the private placement entered into a\nregistration rights agreement substantially similar to that entered into with\nrespect to the Company's October 25th financing, pursuant to which the\nCorporation is required to file with the SEC a Registration Statement covering\nthe common shares issued, including any common shares issued upon exercise of\nthe warrants, by December 31, 2005. If the Registration Statement is not\nfiled by December 31, 2005 or is not declared effective by the SEC by April\n20, 2006, then the Corporation will be liable to make pro rata payments to\neach investor who is a party to the registration rights agreement in an amount\nequal to 1.0% of the aggregate amount invested by such investor for each 30-\nday period or pro rata for any portio...