Morumbi has closed on the first tranche of a non-brokered private placement offering (the "Offering") for aggregate gross proceeds of $705,000. The Company issued 3,525,000 units (each a "Unit"), at a price of $0.20 per Unit. Each Unit consists of one common share of the Company ("Common Share") and one-half of one common share purchase warrant (each whole being a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share of the Company at a price of $0.30 for 12 months from the date of issuance, subject to earlier exercise in accordance with the terms thereof. A second tranche is expected to close in January.
In connection with the Offering, the Company paid an aggregate amount of $20,000 in cash fees and also issued an aggregate of 100,000 finder's warrants (the "Finder's Warrants") to certain eligible arm's length persons. Each Finder's Warrant entitles the holder thereof to acquire one Unit of the Company at a price of $0.20 per Unit until 12 months from the date of issuance.
Proceeds of the Offering will be used to fund completion of the Morumbi 102 McKinley 12-3365-22 well located in McKinley Alberta and otherwise for general corporate purposes.
All securities issued pursuant to the Offering, including the Common Shares and Warrants underlying the Units, the Common Shares underlying the Warrants, the Finder's Warrants and the Common Shares and Warrants underlying the Finder's Warrants are subject to a four (4) month statutory hold commencing from closing.
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