NOG NEWSNordic Oil closes second tranche of financing
2008-03-14 16:34 ET - News Release
Mr. Donald Benson reports
NORDIC OIL AND GAS LTD. ANNOUNCES CLOSING OF PRIVATE PLACEMENT OFFERINGS
Nordic Oil and Gas Ltd. has completed the second closing of the corporation's previously announced private placement offerings of flow-through units and non-flow-through units. At the closing, the corporation issued 2,131,055 flow-through units at a price of 42.5 cents per flow-through unit for gross proceeds of $905,698 to various subscribers. Each flow-through unit consisted of one Class A common share of the corporation issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one-half of one Class A common share purchase warrant. Each whole flow-through unit warrant entitles the holder thereof to purchase one regular Class A common share of the corporation at a price of 65 cents for a period of two years from the date of issuance.
At the closing, the corporation also issued 340,000 non-flow-through units at a price of 40 cents per unit for gross proceeds of $136,000 to various subscribers. Each non-flow-through unit consisted of one regular Class A common share of the corporation and one-half of one Class A common share purchase warrant. Each whole non-flow-through unit warrant entitles the holder thereof to purchase one regular Class A common share of the corporation at a price of 60 cents for a period of two years from the date of issuance. The securities issued pursuant to the offerings will be restricted from transfer for a period of four months and a day from the date hereof in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
Certain finders assisted the corporation by introducing potential subscribers for the offering and each finder received fees equal to 6 per cent of the purchase price of the flow-through units and non-flow-through units sold to subscribers for the offerings introduced by such finder as well as warrants equal to 8 per cent of the number of flow-through units and units sold to subscribers for the offerings introduced by such finder. Each finder's warrant entitles the holder thereof to purchase one regular Class A common share of the corporation at a price of 60 cents for a period of 24 months from the date of issuance.
The closing of the offerings is subject to the final approval of the TSX Venture Exchange. The corporation also received extensions from the TSX Venture Exchange for both of the offerings to March 28, 2008.