Pacific Asia Petroleum Raises $20MM in Registered Direct Offering
Pacific Asia Petroleum has entered into definitive agreements with certain accredited investors to sell in a registered direct offering an aggregate of 5 million shares of its common stock at a price of $4.00 per share for aggregate gross proceeds of $20 million. In addition, the Company will, at closing, issue to the Investors two series of warrants. The Series A Warrants shall provide the Investors the right to purchase up to an additional 2 million shares, in the aggregate, with an exercise price equal to $4.50, which warrants shall be exercisable commencing 6 months following the closing for a period of 30 months. The Series B Warrants shall provide the Investors the right to purchase up to an additional 2 million shares, in the aggregate, at the common stock offering price, or $4 per share, which warrants shall be exercisable immediately until November 1, 2010. If fully exercised, the Series A Warrants and Series B Warrant would result in additional gross proceeds to the Company of $17 million.
On the conclusion of the direct offering, President and CEO, Frank C. Ingriselli commented, "We are very pleased to announce the entry into agreements with investors for this offering, the closing of which will represent the accomplishment of a significant milestone in the pending acquisition of rights in the Oyo Oilfield. The participation of major institutional investors in this offering highlight the confidence the investor community has put in our business strategy and the Company's future growth through this major acquisition. We look forward to closing this offering and completing the Oyo acquisition as planned and continuing our goal of delivering on shareholder value."