Of the money raised, Insiders of the Company invested 12% for a total of $180,500. Martial Rolland, President and CEO of Rolland Energy, invested $143,000, for nearly 10% of the financing; Jamil Belkassem, General Manager, invested $15,000; Etienne Dubreuil, Secretary of the Board of Directors, invested $10,000; Michael McLellan, VP of Finance and CFO, invested $5,000; and other insiders invested $7,500.
"This new financing will allow us to drill at least three new wells on our Woodnorth property by the end of March 2007," said Martial Rolland, President and CEO of Rolland Energy. "If we are successful," he added, "this exploration work will result in increased production, greater reserves, and lower production costs via economies of scale."
Each Unit sold in conjunction with the Offering consisted of 2,000 flow-through common shares of the Company (the "Flow-Through Shares"), 400 common shares of the Company (the "Common Shares") and 1,400 common share purchase warrants (the "Warrants"). Each Warrant will entitle its holder to purchase, at any time for a period of one (1) year following closing, one (1) Common Share at a price of $0.28 per Common Share.
Pursuant to the combined gross proceeds raised over the two tranche closings and in consideration for its services, CTI received a corporate finance fee of $20,000 (plus applicable taxes) and broker warrants giving it the right to acquire 120,000 Common Shares at a price of $0.175 per Common Share and 600,000 Common Shares at a price of $0.215 per Common Share at any time within the next 18 months. CTI also shared a cash commission of $93,195 with members of the selling group. Pursuant to certain subscriptions and in lieu of compensation to members of the selling group, a finder's fee of $24,720 was paid directly by the Company.
The Flow-Through Shares and Common Shares issued in connection with the Offering are subject to a four-month hold period in accordance with applicable securities laws and the policies of the TSX Venture Exchange. As a result of the second closing of the Offering, the Company now has 51,868,290 shares outstanding.
Previously known as RVBS, Rolland Energy is an oil and gas company with subsidiary operations in information technology. Its oil and gas operations are based in south-western Manitoba and produced 31,716 barrels of oil for the year ended June 30, 2006.The Company intends to spin-off its information technology assets into a separate enterprise.
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