NEW PRIVATE PLACEMENT OFFERINGSNordic Oil & Gas to raise $4-million privately
2008-02-01 16:03 ET - News Release
Mr. Donald Benson reports
NORDIC OIL AND GAS ANNOUNCES TWO NEW PRIVATE PLACEMENT OFFERINGS
Nordic Oil & Gas Ltd. intends to undertake two new non-brokered private placement offerings: one for up to 5,882,235 units at a price of 42.5 cents per unit for gross proceeds of $2.5-million to various subscribers; and the other for up to 3.75 million units at a price of 40 cents per unit, for gross proceeds of $1.5-million.
Each unit priced at 42.5 cents will consist of one Class A common share of the company, 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 warrant would entitle the holder thereof to purchase one regular Class A common share of the company at a price of 65 cents for a period of two years from the date of issuance.
Each unit priced at 40 cents will consist of one Class A common share of the company plus one-half of one Class A common share purchase warrant. Each whole warrant would entitle the holder thereof to purchase one Class A common share of the company at a price of 60 cents per share for a period of two years from the date of issuance.
The securities issued pursuant to the offerings are subject to a four-month holding period from the date of closing.
Certain finders are expected to assist the company by introducing potential subscriber(s) to the new offerings and, subject to compliance with applicable legislation, will be entitled to receive fees equal to 6 per cent of the purchase price of the new units sold, pursuant to the new offering, as well as warrants equal to 8 per cent of the number of new units sold, pursuant to the new offering. Each new finder's warrant shall entitle the holder thereof to purchase one regular Class A common share of the company at a price of 60 cents for a period of 24 months from the date of issuance.
The company anticipates multiple closings in the coming weeks.
All terms of the new offerings are subject to the approval of the TSX Venture Exchange.