Published on 8/7/2008 in the Prospect News PIPE Daily.
New Issue: North Peace wraps C$26 million private placement of units, stock
By Devika Patel
Knoxville, Tenn., Aug. 7 - North Peace Energy Corp. settled a private placement of units and shares for C$26 million. The deal was announced June 5 and priced July 24 for C$25 million.
The company sold 13,333,300 units at C$1.50 apiece for C$20 million. Each unit consists of one common share and one half-share warrant. Each whole warrant is exercisable at C$2.00 for 18 months.
The company also sold 3,636,360 flow-through common shares at C$1.65 per share for C$6 million. The deal was to have included only C$5 million in shares.
The deal was conducted by a syndicate led by GMP Securities LP and including TD Securities Inc., Blackmont Capital Inc., Canaccord Capital Corp. and Raymond James Ltd.
The majority of the proceeds will be used to fund all costs associated with the CSS pilot project, including the acquisition of capital equipment, construction costs and the drilling of two horizontal CSS wells. The remaining funds will be used to complete the 2008/2009 eight well winter delineation drilling program, advance engineering and environmental baseline work for the commercial CSS project and for general corporate purposes.
North Peace is an oil sands company based in Calgary, Alta.
| Issuer: | North Peace Energy Corp.
|
| Issue: | Units of one common share and one half-share warrant, flow-through shares
|
| Amount: | C$25,999,944
|
| Agents: | GMP Securities LP (lead), TD Securities Inc., Blackmont Capital Inc., Canaccord Capital Corp., Raymond James Ltd.
|
| Announcement date: | June 5
|
| Pricing date: | July 24
|
| Settlement date: | Aug. 7
|
| Stock symbol: | TSX Venture: NPE
|
| Stock price: | C$1.50 at close July 23
|
|
|
| Units
|
| Amount: | C$19,999,950
|
| Price: | C$1.50
|
| Units: | 13,333,300
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$2.00
|
|
|
| Shares
|
| Amount: | C$5,999,994
|
| Shares: | 3,636,360
|
| Price: | C$1.65
|
| Warrants: | No
|
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