Petrichor Energy Inc. (TSXV: PTP) plans to launch a non-brokered private placement to raise gross proceeds of up to $3 million through the issuance of up to 12 million units at $0.25 per unit.
Each unit consists 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 at 5 p.m. (Vancouver time) on the twentieth 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.
Convertible Debenture Financing and Marble Falls Property Acquisition Update:
Petrichor anticipates closing its convertible debenture financing on or about Sept. 27, subject to satisfaction of certain conditions, including receipt of final acceptance from the Exchange. The first quarterly interest payment under the convertible debentures would be Dec. 31.
Completion of the convertible debenture financing will be subject to completing the Marble Falls acquisition, and the company plans to close the two transactions concurrently. Proceeds from the convertible debenture financing will also be used towards general working capital.
Upon receipt of confirmation from the Exchange that it may do so, the company will attend to SEDAR filing a National Instrument 51-101 Report that has been prepared regarding the Marble Falls property.
Both the convertible debenture financing and the Marble Falls acquisition remain subject to receipt of acceptance by the Exchange.
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.