By Devika Patel
Knoxville, Tenn., Nov. 6 - Gastem Inc. announced that it has completed two non-brokered private placements of units and stock, raising C$2.5 million.
In the first financing, the company sold 1,428,571 flow-through shares at C$0.70 per share for C$1 million.
In the second deal, it sold 2.5 million units at C$0.60 apiece for C$1.5 million. Each unit will consist of one common share and one half-share warrant, with each whole warrant exercisable at C$0.75 for two years.
Proceeds from the units sale will be used for general working capital purposes. Proceeds from the shares sale will be used for exploration, drilling and development.
Gastem is an oil and gas exploration company based in Montreal.
| Issuer: | Gastem Inc.
|
| Issue: | Units of one common share and one half-share warrant; flow-through shares
|
| Amount: | C$2.5 million
|
| Agent: | Non-brokered
|
| Settlement date: | Nov. 6
|
| Stock symbol: | TSX Venture: GMR
|
| Stock price: | C$0.60 at close Nov. 6
|
|
|
| Units
|
| Amount: | C$1.5 million
|
| Units: | 2.5 million
|
| Price: | C$0.60
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.75
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|
|
| Flow-through shares
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| Amount: | C$1 million
|
| Units: | 1,428,571
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| Price: | C$0.70
|
| Warrants: | No
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