Elkwater arranges credit facility, closes placements Elkwater arranges credit facility, closes placements
They did this VERY quickly and the new credit facility speaks for their producing assets. Not to mention they have been acquiring sections at the Alberta Crown Land sale.
The last time the company was financed was in 2005. 9 years ago and they have been operating on cash flow since this recent financing. These guys DON'T dilute the share structure and kill their shareholders, Yes the S/P is a measly 13 cents but the underlying value may not be seen in the daily market however as they conitnue to grow production through acquisition they will be a candidate for a takeover, and NOT at today's current shareprice! Nice to see insiders taking part Again in the financing and continued HUGE majority stake in the company and still under 25 million shares outstanding F/D with cash flow!
2014-01-31 19:30 ET - News Release
Mr. Don Brown reports
ELKWATER ANNOUNCES CLOSING OF FINANCINGS AND ACQUISITION
Elkwater Resources Ltd. has entered into a new $4.1-million revolving senior credit facility with a Canadian chartered bank, has closed its previously announced non-brokered private placement by issuing five million common shares at a price of five cents per share for gross proceeds of $250,000, and has closed its previously announced non-brokered private placement of an aggregate amount of $1.25-million of non-convertible, secured, subordinated debentures bearing interest at a rate of 2 per cent plus prime and having a term of two years.
Proceeds from the three financings were used to complete a previously announced $625,000 acquisition of oil and gas assets producing approximately 50 barrels of oil equivalent per day (70 per cent gas) located in the Lomond and Pembina areas of Alberta and to pay out the corporation's existing credit facility. The rest of the proceeds will be used for general working capital purposes.
Following the private placement, the corporation will have a total of 19,138,965 shares issued and outstanding. The shares issued pursuant to the private placement and the debentures issued pursuant to the debenture financing will be subject to a four-month statutory hold period. The private placement remains subject to final approval from the TSX Venture Exchange.
Directors and officers of the corporation subscribed for two million shares (or 40 per cent) of the private placement and $800,000 (or 64 per cent) of the debenture financing. No fees were payable in connection with such subscriptions. The insider subscriptions were approved by the corporation's independent directors. Neither the corporation nor any subscribing insider had knowledge of any material information concerning the corporation or its securities which had not already been generally disclosed. As a result of closing of the private placement, the number of shares owned or controlled directly or indirectly by Don J. Brown increased from 6,026,250 (42.6 per cent) to 8,026,250 (41.9 per cent).
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