Petroglobe Inc. PTGBF

Petroglobe Inc. Announces Amended And Increases Pr

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Petroglobe Inc. Announces Amended And Increases Proposed Private Placement
Wednesday, 13 Oct 2010 06:58pm EDT 

Petroglobe Inc. announced that amended and increased the size of its previously announced private placement to an aggregate of $4,000,000 and an overallotment option granted to the agents of an additional $400,000 through the issue of units comprised of common shares and warrants and a separate issue of units comprised of flow-through common shares and warrants. The common share units will each be comprised of one common share and one-half of a common share purchase warrant and issued at a price of
.11 to raise up to $1,500,000. The flow-through common share units will each be comprised of one flow-through common share and one-half of a common share purchase warrant and issued at a price of
.14 to raise up to $2,500,000. Each whole warrant will be exercisable to acquire one common share at a price of
.14 until May 31, 2011. PetroGlobe intends to use the gross proceeds from the issue of flow-through common shares to incur Canadian Exploration Expense or Canadian Development Expense. PetroGlobe has engaged Emerging Equities Inc. to lead a syndicate of agents, including Burgeonvest-Bick Securities Limited, in connection with the private placement on a commercially reasonable best efforts basis. The agents will receive a 6.5% cash commission plus, if a specified minimum proceeds are raised, common share purchase options to acquire that number of common shares equal to 6% of the number of common share and flow-through share units subscribed for under the offering.