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Storm Cat Energy Corporation Announces C$23.1 Million Private Placement of Units and Flow-Through Common Shares
Storm Cat Energy Corporation Announces C$23.1 Million Private Placement of Units and Flow-Through Common Shares.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Alberta and DENVER, Sept. 19 /CNW/ -- Storm Cat Energy\nCorporation (Amex: SCU; Toronto: SME) today announced that it has entered into\nagreements in principal with a single investment group based in Ontario,\nCanada, pursuant to which this investment group will, acting as portfolio\nmanager for fully-managed accounts, purchase 7,594,937 units (C$12,000,000.46)\nand 6,172,839 flow-through common shares (C$11,111,110.20) (the \"Offering\"). \nEach unit, priced at C$1.58 per unit, will comprise one common share and\napproximately 0.28 of a common share purchase warrant (2,126,582 warrants). \nEach whole common share purchase warrant will be exercisable into one common\nshare at a price of C$1.90 per share for a period of 18 months from closing. \nEach flow-through common share is priced at C$1.80 per share. In connection\nwith the Offering, the Company will pay a cash commission equal to 6% of the\naggregate gross offering amount.\nThe completion of the Offering is subject to the acceptance of the\nToronto Stock Exchange and the American Stock Exchange.\nThe net proceeds from the sale of the units will be used to pay down\nmezzanine debt recently incurred to fund its acquisition in the previously\nannounced acquisition in the Powder River Basin and to fund the Company's\nexploration and development program of the acquired properties in the Powder\nRiver Basin, Wyoming, and for general corporate purposes. The net proceeds\nfrom the sale of flow-through common shares will be used to incur exploration\nand development expenses which qualify as CEE under the Income Tax Act\n(Canada).\nThe securities to be issued under the Offering have not been registered\nunder the United States Securities Act of 1933 or any state securities laws,\nand unless so registered may not be offered or sold in the United States,\nexcept pursuant to an exemption from, or in a transaction subject to, the\nregistration requirements of the Securities Act of 1933 and applicable state\nsecurities laws. This press release is issued pursuant to Rule 135(c) of the\nSecurities Act of 1933, and does not constitute an offer to sell, or the\nsolicitation of an offer to buy, nor shall there be any sale of the common\nshares or warrants in any jurisdiction in which such offer, solicitation or\nsale would be unlawful prior to registration or qualification...