Each Unit is comprised of one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). One Warrant entitles the holder to purchase one additional common share at a price of US$7.50, for a term of two years expiring on June 20, 2009. The Warrants are subject to accelerated expiration in the event that the price of the Company's common shares on the American Stock Exchange is US$12.00 or more for 20 consecutive trading days, the resale of the shares included in the Units and issuable on exercise of the Warrants has been registered under the Act, and the hold period for Canadian subscribers has expired. In such event, the warrant term will be reduced to 30 days from the date of issuance of a news release announcing such accelerated expiration of the warrant term.
In the event the Company fails to file on or before August 18, 2007, a registration statement with the US Securities and Exchange Commission for the purpose of registering under the Act the resale of the shares included in the Units and issuable on exercise of the Warrants, each purchaser of the Units will receive for nominal consideration an additional 0.10 of one Unit.
A fee of 6% of the aggregate gross proceeds was paid to the Agents with respect to the sale of the Units and, in addition, compensation options were issued to the Agents entitling them to purchase an aggregate of 340,800 common shares at an exercise price of US$5.00 per share until June 20, 2009.
The proceeds from the offering will be used for exploration and development of the newly acquired NELP-VI exploration blocks, all other exploration blocks acquired hereafter and for general corporate purposes.
GeoGlobal Resources Inc., headquartered in Alberta, Canada, is a US publicly traded oil and gas company, which through its subsidiaries, is engaged primarily in the pursuit of petroleum and natural gas through exploration and development in India. Since inception, the Company's efforts have been devoted to the pursuit of Production Sharing Contracts with the Government of India. Currently, the Company is focused on the development of high potential exploration targets in the Krishna Godavari, Cambay, Rajasthan and the Deccan Syneclise basin areas.
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