X-Terra Resources Corporation announced that it has completed its previously announced private placement of 5,000,000 units at a price of $1.00 per unit, for gross proceeds to X-Terra of $5,000,000. Each of the units consisting of one common share and one common share purchase warrant. Each warrant entitles its holder to purchase one additional common share of X-Terra at a price $1.50 for two years.
PowerOne Capital Markets Limited acted as agent for the private placement. In connection with the private placement, X-Terra paid a cash commission to PowerOne in an amount equal to 8% of the gross proceeds of the private placement, and issued compensation options to PowerOne, entitling it to purchase up to 400,000 units at a price of $1.00 per unit for a period of two years after the closing of the private placement. Each of the units will be comprised of one common share and one common share purchase warrant. Each warrant will entitle its holder to purchase one additional common share of X-Terra at a price $1.50 for two years from the closing of the private placement.
Under applicable securities legislation and the policies of the TSX Venture Exchange, all of the foregoing securities are subject to a hold period expiring on November 12, 2008.
The proceeds from the private placement will be used by X-Terra for the exploration program on its shale gas properties located in the Québec Lowlands and for working capital. As a result of the closing of the private placement, there are 12,245,069 common shares of X-Terra issued and outstanding.
Most Popular Articles