Oilsands Quest has priced its previously-announced marketed public offering (the "Offering") of 30,500,000 units ("Units"). The offering of the Units has been priced at US$0.85 per Unit.
Each Unit will be comprised of one common share ("Share") and one-half of a common share purchase warrant of the Company ("Warrant") with each whole Warrant entitling the purchaser to purchase one Share of the Company for US$1.10 for a period of 24 months following closing of the Offering.
The Offering will be made by a syndicate of agents led by Genuity Capital Markets, TD Securities Inc. as well as Canaccord Capital Corporation, Dundee Securities Corporation and RBC Capital Markets Inc. (the "Agents"). The Company has agreed to grant the Agents an over-allotment option to purchase up to an additional 4,575,000 Shares and 2,287,500 Warrants pursuant to the Offering.
The Agents may exercise the over-allotment option, in whole or in part, at any time up to 30 days from the closing of the Offering.
The Offering is subject to certain conditions, including stock exchange approval.
The Company will use the funds to continue its testing activities at Test Sites 1 and 3, continue its exploration activities on its existing permits and licenses and for general corporate purposes. Specific allocations of the proceeds for such purposes have not been made at this time.
The Offering is expected to close on or about May 12, 2009.
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