By Devika Patel
Knoxville, Tenn., Aug. 3 - Cobra Venture Corp. announced it has entered into an agreement with agent Northern Securities Inc. to raise C$2 million through a private placement of units.
The company plans to sell up to 5,714,286 units at C$0.35 apiece. Each unit will consist of one share and one-half share warrant. Each whole warrant is exercisable at C$0.50 for two years.
The warrants may expire earlier if, after four months and one day, Cobra's closing trading price exceeds C$0.90 for fifteen consecutive trading days. In that case, the warrants will expire in thirty days.
Northern Securities will receive a cash commission equal to 7.5% of the deal's gross proceeds and will be receive compensation options equal to 7.5% of the total number of units sold. Each compensation option is exchangeable for one unit at C$0.35 each, on the same terms as the other units, for two years.
Proceeds will be used for property acquisition and general corporate purposes.
Cobra Venture is a Vancouver, B.C.-based oil and natural gas production and exploration company.
Issuer: | Cobra Venture Corp.
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Issue: | Units of one share and one half share warrant
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Amount: | C$2 million
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Units: | 5,714,286
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Price: | C$0.35
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Warrants: | One half warrant per unit
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Warrant expiration: | Two years (or 30 days if, after four months and one day, Cobra's closing trading price exceeds C$0.90 for fifteen consecutive trading days)
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Warrant strike price: | C$0.50
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Agent: | Northern Securities Inc.
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Pricing date: | Aug. 2
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Stock symbol: | TSX Venture: CBV
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Stock price: | C$0.37 at close Aug. 2
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