Each Unit will consist of one common share in the capital of the Corporation and one-half of a warrant. Each Warrant will entitle the holder to purchase a Common Share at an exercise price of $0.80 at the option of the holder within two years. The Corporation will have the option to force conversion if the Common Shares trade over $1.00 for more than 20 trading days. Certain finders may also be entitled to compensation in relation to investors that they introduce to the Corporation. Such compensation will include a commission of 10% of the applicable proceeds, which may be payable in Common Shares at a deemed price of $0.40 per share, and Warrants in an amount equal to 10% of the number of applicable Common Shares issued.
The Corporation is also pleased to announce that it has entered into a letter of intent effective October 10, 2007 with another corporation, in which the Corporation agrees to purchase certain petroleum and natural gas rights, leases, properties, lands, wells, equipment, facilities, seismic data and related assets for total consideration of $2,500,000. There may be a finder's fee payable in respect of this acquisition, which finder's fees may be payable in Common Shares at a deemed price of $0.56 per share.
The private placement and the acquisition, including any applicable finder's fees, are subject to regulatory acceptance and the Common Shares when issued will be subject to a four-month hold period from the date of issue.
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