A commission of 7% of the gross proceeds raised from the financing was paid to Blackmont. In addition, Blackmont has received a number of compensation warrants entitling it to purchase 758,333 Units (the "Broker Units") at an exercise price of $1.20 per Broker Unit for a period of 18 months following the closing.
The proceeds from the private placement will primarily be used in Groundstar's proposed exploration work and drilling program in Egypt and for general corporate purposes.
Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in Guyana, central Asia and north Africa.
The Units have not and will not be registered under the United States Securities Act of 1933 as amended (the "US Securities Act") or any state securities laws and may not be offered or sold in the United States or to any US Person except in certain transactions exempt from the registration requirements of the US Securities Act and applicable state securities laws.
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