Each Unit will consist of one Flow-Through Common Share, within the meaning of the Income Tax Act (Canada), plus one-half of a Share Purchase Warrant (the "Warrant") of the Corporation. Each full Warrant will entitle the holder to purchase one regular Class A common share of the Corporation at a price of $0.60 for a period of one year from the date of issuance.
Union Securities Ltd. (USL), an investment dealer with offices across Canada, will assist the Corporation with respect to the Offering and will be paid a commission fee of 10% of the gross proceeds raised pursuant to this Offering. USL will also have the option to purchase, within 18 months from the date of issuance, broker warrants equal to 10% of the total number of Units sold pursuant to the Offering, at the same price per Unit as for this Offering.
Commenting on the proposed financing, Mr. Benson stated: "We are pleased to be working with Union Securities on this Offering at this time. We have a number of development and drilling initiatives that we want to move ahead with, and this financing will allow us to accelerate our timetable and move forward with more expediency on our programs at each of our three locations.
"In particular, this will position us to proceed more rapidly with our Coal Bed Methane program in Joffre, Alberta," he added. "In addition, we will be in a strong position to proceed with a drilling program on our Cote First Nation property near Kamsack, Saskatchewan, once the data has been processed from the seismic work that was completed there last month."
All the terms of the Offering are subject to the approval of the TSX Venture Exchange.
Nordic Oil and Gas is a junior oil and gas exploration company, which is listed on the TSX Venture Exchange and trades under the symbol NOG.
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