By Devika Patel
Knoxville, Tenn., April 23 - Gastem Inc. said it took in C$10.16 million from a private placement of units, which priced for C$8.01 million with a C$2.15 million greenshoe on April 3.
The deal was conducted with a syndicate of underwriters led by Fraser Mackenzie Ltd. and including Wellington West Capital Markets Inc., National Bank Financial Inc. and Research Capital Corp.
The company sold 4,725,000 units of one share and one half-share warrant at C$2.15 per unit. Of those units, 1 million were from the fully exercised greenshoe. Each whole warrant will be exercisable at C$3.00 for 18 months.
The investor group was led by Sprott Asset Management Inc., acting as agent, with participation from funds managed by Northern Rivers Capital Management Inc.
Proceeds will be used for exploration and development on the company's properties and for general corporate purposes.
Gastem is an oil and gas exploration company based in Montreal.
| Issuer: | Gastem Inc.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$10,158,750
|
| Units: | 4,725,000
|
| Price: | C$2.15
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$3.00
|
| Agent: | Sprott Asset Management Inc.
|
| Underwriter: | Fraser Mackenzie Ltd. (lead), Wellington West Capital Markets Inc., National Bank Financial Inc., Research Capital Corp.
|
| Pricing date: | April 3
|
| Settlement date: | April 23
|
| Stock symbol: | TSX Venture: GMR
|
| Stock price: | C$2.50 at close April 2
|
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