Shoal Point Energy Ltd. (OTC: SHPNF) closed the non-brokered private placement after completing the second and final tranche consisted of some 15.6 million units sold at $0.05.
Each unit consisted of one share and one share purchase warrant. Each full warrant is exercisable at a strike price of $0.06 with an expiry on the second anniversary of the date of closing of the transaction.
In total, the company placed some 57.3 million units for gross proceeds of $2.9 million. Of this total, 3 million units were flow-thru units sold at $0.05 per unit for gross proceeds of $150,000. Each flow-thru unit consisted of one flow-thru share and one-half of a share purchase warrant. Each full warrant is exercisable at a strike price of $0.06 with an expiry on the second anniversary of the date of closing of the transaction.
Proceeds will be used for general working capital and qualifying Canadian exploration expenses.
Portions of the private placement were subject to finder's fees consisting of 6% of the cash value plus 6% agent warrants with the same terms as the warrants associated with the units. The private placement is subject to regulatory acceptance and approval.
Shoal Point Energy Ltd. engages in the acquisition, exploration, and development of oil and natural gas properties in Canada. The company is headquartered in Toronto.