By Sheri Kasprzak
Atlanta, May 17 - Nordic Oil and Gas Ltd. has slashed the number of flow-through share units it had previously offered in a private placement, dropping the offering to C$1 million from C$5.6 million.
"The difficulties in raising funds through equity financing have been well-documented in recent weeks," said Donald Benson, the company's chief executive officer, in a statement. "Flow-through shares continue to be popular with Canadian investors as they are the only remaining tax-assisted investment vehicle still available. As such, we believe that it is in the best interests of Nordic Oil and Gas and its shareholders to allow interested parties to participate in the reduced offering."
The company now plans to sell up to 2 million flow-through share units at C$0.50 each. The units include one flow-through share and one half of a class A common-share warrant. The whole warrants provide for an additional share at C$0.75 each for one year.
The revised deal is expected to close May 27.
First Associates Investments Inc. and Wellington West Capital Inc. are the placement agents in the offering.
The company has also decided not to proceed with a public offering of 11.2 million common-share units, priced at C$0.50 each. That public offering had been announced March 22.
Separately, the company is in talks to potentially amalgamate Nordic and Western Warner Oils Ltd.
In other news, Nordic announced that it might be selling its gas-production property in Joffre, Alta.
Based in Winnipeg, Man., Nordic is an oil and natural gas exploration company.
| Issuer: | Nordic Oil and Gas Ltd.
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| Issue: | Units of one flow-through share and one half-share warrant
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| Amount: | C$1 million
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| Units: | 2 million
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| Price: | C$0.50
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | One year
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| Warrant strike price: | C$0.75
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| Placement agents: | First Associates Investments Inc. and Wellington West Capital Inc.
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| Pricing date: | May 17
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| Settlement date: | May 27
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| Stock price: | C$0.48 at close May 17
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