Fully subscribed units offer to finance exploration, working capital
By Devika Patel
Knoxville, Tenn., Feb. 1March 146 - Cabo Drilling Corp. said it increased a non-brokered private placement of units, which priced for C$1.5 million on Feb. 16. The fully subscribed deal is now expected to raise C$2.53 million.
The company is selling units of one common share and one half-share warrant at C$0.20 apiece. Each full two-year warrant will be exercisable at C$0.25. The strike price reflects a 4.17% premium to the Feb. 15 closing share price of C$0.24.
"This significant working capital injection will strengthen the company's balance sheet and enable the company to continue expanding its drilling capacity at a time when the demand for drills is growing steadily," chief executive officer and president John Versfelt said in a press release at pricing.
Cabo is a drilling services company with headquarters in North Vancouver, B.C.
| Issuer: | Cabo Drilling Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$2,525,000
|
| Price: | C$0.20
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration | Two years
|
| Warrant strike price: | C$0.25
|
| Agent: | Non-brokered
|
| Pricing date: | Feb. 16
|
| Upsized: | March 14
|
| Stock symbol: | TSX Venture: CBE
|
| Stock price: | C$0.24 at close Feb. 15
|
| Market capitalization: | C$12.67 million
|
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