Jacob Securities assists in flow-through shares, common shares sale
By Devika Patel
Knoxville, Tenn., Dec. 16 - Reef Resources Ltd. said it raised C$277,189 in the second tranche of a C$2.5 million private placement of stock and units. The deal priced for C$2 million on Oct. 13 and was revised on Nov. 2.
The company took in C$1.69 million on Nov. 24.
The company is selling flow-through common shares at C$0.11 per share and units of one common share and a half-share warrant at C$0.10 per unit. It sold 900,000 units and 14,524,781 shares in the first tranche and 272,500 units and 2,272,181 shares in the second.
Each warrant is exercisable at C$0.25 for one year.
The price per flow-through common share represents a 10% premium to C$0.10, the Oct. 12 closing share price. The warrant strike price is a 150% premium to the Oct. 12 closing share price.
The deal is being conducted by lead agent Jacob Securities Inc. Solo Oil plc will invest C$1.5 million.
Proceeds will be used to complete two additional wells in the Ausable pinnacle reef, tie-in an existing standing gas well in the Airport South reef, acquire pressurization natural gas for recycling in the Ausable reef, execute a field optimization program and for general working capital.
Based in Calgary, Alta., Reef Resources is an oil and gas company.
Issuer: | Reef Resources Ltd.
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Issue: | Flow-through common shares, units of one common share and a half-share warrant
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Amount: | C$2.5 million
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Agent: | Jacob Securities Inc. (lead)
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Investor: | Solo Oil plc (for C$1.5 million)
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Pricing date: | Oct. 13
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Revised: | Nov. 2
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Settlement date: | Nov. 24 (for C$1,687,726), Dec. 16 (for C$277,189)
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Stock symbol: | TSX Venture: REE
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Stock price: | C$0.10 at close Oct. 12
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Market capitalization: | C$3.56 million
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Flow-through common shares
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Price: | C$0.11
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Warrants: | No
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Units
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Price: | C$0.10
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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$0.25
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