REDCLIFFE
Redcliffe Exploration arranges $8-million financing
2008-03-20 09:41 ET - News Release
Mr. Daryl Connolly reports
REDCLIFFE ANNOUNCES $8 MILLION FINANCING
Redcliffe Exploration Inc. has entered into an agreement with an underwriting syndicate led by Northern Securities Inc., and including GMP Securities LP and Raymond James Ltd., to issue, by way of a private placement, 8,333,333 Class A shares on a bought deal basis at 60 cents per share, and up to 4,166,667 flow-through Class A shares on a best efforts basis at a price of 72 cents per flow-through share, for gross proceeds of up to approximately $8-million.
In addition, the corporation has granted the underwriters a greenshoe option, exercisable prior to closing, to offer on a best efforts basis up to an additional 2,083,333 shares at 60 cents per share, and up to an additional 1,041,667 flow-through shares at a price of 72 cents per flow-through share, which would increase the size of the offering to approximately $10-million, if fully subscribed.
Proceeds from the share offering will be used to finance the corporation's continuing drilling program in its core focus areas and for general corporate purposes. Proceeds from the flow-through share offering will be used to incur qualifying expenditures.
Closing of the offering is expected to occur on or about April 14, 2008, and is subject to the receipt of all requisite regulatory and stock exchange approvals. The securities issued under the private placement will be subject to a four-month hold period from the date of closing.
We seek Safe Harbor.