Petrichor Energy Inc. (TSXV: PTP) has increased its non-brokered private placement to 14.4 million units sold at $0.25 per unit.
The company expects the upsized offering to raise gross proceeds of up to $3.6 million instead of the orginial offering of $3 million. The increase is subject to acceptance by the TSX Venture Exchange.
Each unit consisting of one common share and one share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share of the company for a period of two years from the date of issuance at $0.35 per share, provided that in the event that the weighted average closing price of the company's shares on the exchange equals or exceeds $0.70 during any 20 consecutive trading days commencing four months after the date of issuance of the warrants, then the company may within 30 days of such an occurrence give notice in writing to the holders of the warrants that the warrants shall expire on the 20th business day following delivery of such notice unless exercised by the holders of the warrants prior to such time.
Proceeds will be used towards the acquisition and development of oil and gas properties and for general working capital.
The company may pay finders' fees in connection with the private placement in accordance with the rules and policies of the TSX Venture Exchange.
Marble Falls Acquisition
In addition, the company has acquired an additional 16.66% working interest in the Marble Falls Property from BlakEnergy Ltd. for cash consideration of some US $1.4 million on the following terms: US $150,000 down payment, which is paid; $637,500. to be paid upon the closing of the private placement; and $600,000 to be paid from (i) 15% of the net revenue received by the company on any wells drilled, developed and producing on the property and (ii) 15% of any future equity financings with the balance, if any, payable by Jan. 31, 2015. Upon completion, the company will own a 66.66% working interest in the property.
Petrichor Energy Inc. is an emerging oil and gas exploration company focused on acquiring, exploring and developing new oil and natural gas reserves in North and South America. The company is based in Vancouver, B.C.