STRATA-X ARRANGING CDI PRIVATE PLACEMENT Strata-X Energy Ltd. is undertaking a non-brokered private placement to sophisticated and institutional investors in Australia of up to 10 million units in the company at a price of six Australian cents per unit for gross proceeds of approximately $600,000 (Australian). Each unit consists of one Chess depository unit (CDI) and one-half of one share purchase warrant. Each warrant is exercisable into one CDI at an exercise price of seven Australian cents up until Feb. 28, 2021.
Subject to available financing, the proceeds from the CDI placement are intended to be used by the company to continue its exploration efforts by:
-Reserve and resource report updates;
-CSG pilot (density) design and costing;
-Optional stepout well from 19B-1;
-Natural gas marketing;
-General and administrative costs.
Each placement CDI will represent one common share of Strata-X and will rank equally with existing CDIs. All CDIs issued pursuant to the placement are to be fully tradable and listed on the Australian Securities Exchange. The placement will be completed in accordance with the company's placement capacity pursuant to the ASX's listing rules.
All CDIs issued pursuant to the placement are to be tradable and listed on the ASX and TSX Venture Exchange, subject to the necessary approvals by TSX-V and ASX, respectively. The CDIs will be subject to resale restrictions in Canada for a period of four months and one day from the date of issuance. Strata-X may, subject to regulatory approval, pay commissions in respect of the placement to approved parties (all being arm's-length parties on the placement).