Simba Energy closes $1.31-million financing tranche
Ticker Symbol: C:SMB
Simba Energy closes $1.31-million financing tranche
Simba Energy Inc (C:SMB)
Shares Issued 227,726,259
Last Close 7/2/2014 $0.06
Thursday July 03 2014 - News Release
Mr. Robert Dinning reports
SIMBA ENERGY CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
Simba Energy Inc. has closed the first tranche of a non-brokered private placement, raising gross proceeds of $1,315,090 by the issuance of 21,988,200 units at a price of six cents per unit. Each unit consists of one common share in the capital of the company and one full share purchase warrant. Each warrant is exercisable for four years to purchase one additional common share at a price of 10 cents per warrant share until June 30, 2016, and, thereafter, at a price of 15 cents per warrant share until June 30, 2018.
The company plans to use the proceeds of the private placement to finance exploration commitments associated with the company's production-sharing contracts in Kenya, to retire certain debt and for general working capital purposes. The company paid a finder's fee equal to 7 per cent of the gross proceeds in respect of the subscriptions placed by a finder in cash in the amount of $10,000 and the issuance of 307,000 share purchase warrants. Each finder's warrant entitles the holder to purchase one common share of the company at a price of 10 cents each until June 30, 2016.
Robert Dinning, John Burns, Keith Margetson, James Dck and Hassan Hassan, all directors and/or senior officers of the company, subscribed for a total of 8,815,000 units. The company relied upon exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 contained in Section 5.5 (b) and 5.7 (b), respectively, with respect to the issuance of the units to the insiders. All securities issued pursuant to the private placement are subject to a four-month hold period expiring on Nov. 1, 2014.