Pacific Stratus Energy Closes $85 Million Financing

Pacific Stratus Energy has completed its previously announced private placement. After exercise of the agent's option, Pacific Stratus issued 17,500,000 subscription receipts for common shares of the company at a price of $3.00 per common share subscription receipt for gross proceeds of $52.5 million and 32,500 subscription receipts for units at a price of $1,000 per unit subscription receipt for gross proceeds of $32.5 million. Each unit is comprised of one $1,000 principal amount 13% senior unsecured note due June 14, 2011 and 100 common share purchase warrants exercisable for a period of 2 years and having an exercise price of $4.00 per common share. The subscription receipts and the securities issuable on exercise of the subscription receipts are subject to a four-month hold. Sprott Securities Inc. and GMP Securities LP acted as co-lead agents for this private placement.

Upon closing of the acquisition of Sipetrol, each common share subscription receipt will automatically convert into one common share of Pacific Stratus and each unit subscription receipt will automatically convert into one $1,000 principal amount senior unsecured note and 100 warrants. If closing of the acquisition does not occur on or before July 31, 2006 or Pacific Stratus, prior to July 31, 2006, announces that the acquisition will not be closing, Pacific Stratus will repay to holders of common share subscription receipts and unit subscription receipts their original subscription price.

Pacific Stratus Energy is an oil and gas company with interests in the Doima block and Ortega-Pacande oil fields, as well as in the La Creciente, Moriche and Puli-B exploration blocks in Colombia. The company is focused on identifying acquisition opportunities primarily within the upstream Sub Andean basins, initially in Colombia. The company has offices in Toronto, Caracas and Bogotá.


Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $50.47/BBL 0.98%
Light Crude Oil : $49.72/BBL 1.09%
Natural Gas : $2.76/MMBtu 1.09%
Updated in last 24 hours