By Sheri Kasprzak
Atlanta, June 9 - Exxel Energy Corp. said it plans to raise $10 million in a non-brokered private placement with Gemini Energy Corp.
Exxel will sell 2 million units at $5.00 each to Gemini.
The units include one share and one warrant. The warrants allow Gemini to buy an additional share at $5.00 each unless Exxel signs agreements to raise an additional $10 million in an equity financing before July 29.
If Exxel has not signed such an agreement, the two-year warrants will be exercisable at $6.00 per share. Exxel is currently seeking approval from the Toronto Stock Exchange's Venture Exchange to extend the term of the warrants to five years.
In other news, Exxel said it intends to acquire additional acreage interest in the Piceance Basin of Colorado, which carries a price tag of $7 million, $2 million of which is payable by July 1 and the remaining $5 million by Aug. 1.
Based in Vancouver, B.C., Exxel is an oil and natural gas exploration company.
| Issuer: | Exxel Energy Corp.
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| Issue: | Units of one share and one warrant
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| Amount: | $10 million
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| Units: | 2 million
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| Price: | $5.00
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| Warrants: | One warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | $5.00 if Exxel arranges a $10 million equity financing by July 29; $6.00 if the financing is not arranged by July 29
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| Investor: | Gemini Energy Corp.
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| Pricing date: | June 9
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| Stock price: | C$5.00 at close June 9
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