RE: Halted?TAG Oil Announces Overnight-Marketed Equity Financing
VANCOUVER, Apr 20, 2010 (Canada NewsWire via COMTEX News Network) --
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TAG Oil Ltd. (TSX-V: TAO) (the "Company") is pleased to announce that it has filed a preliminary prospectus in connection with an overnight-marketed public offering (the "Offering") of units (the "Units") in all the provinces of Canada, other than Quebec. Each Unit shall be comprised of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant will be exercisable at a premium to the Unit price and will entitle the holder thereof to acquire one Common Share. Though the Offering will be priced in the context of the market, with final terms of the Offering to be determined at the time of pricing and entering into an underwriting agreement, the Company expects to issue Units in the aggregate amount of approximately C$17 to C$20 million. The Offering will be conducted through a syndicate of underwriters, led by GMP Securities L.P. (the "Underwriters").
The Company will also grant the Underwriters an over-allotment option to purchase additional Units and/or Warrants in an amount up to 15% of the number of Units sold pursuant to the Offering, exercisable in whole or in part at any time up to 30 days from the closing of the Offering.
The Company intends to use the net proceeds of the Offering to fund its exploration and development programs in the onshore portion of the Taranaki Basin and the East Coast Basin of New Zealand, for working capital and general corporate purposes.
The Offering is expected to close on or about May 7, 2010 and is subject to certain customary conditions and regulatory approvals, including the approval of the TSX Venture Exchange, and the entering into by the Company and the Underwriters of an underwriting agreement.