Nextraction Closes Private Placement
Nextraction Energy Corporation has closed its previously announced proposed private placement. Pursuant to the private placement, the Company has issued and sold 4,240,000 units at a price of $1.00 per unit for aggregate gross proceeds of $4,240,000. Each unit consists of one common share and one-half of one common share purchase warrant. Each full warrant will entitle the holder to purchase one additional common share at a price of $1.25 per share until March 29, 2011. The securities issued under the private placement are subject to a four-month hold period under applicable securities laws.
The proceeds from the private placement will be used primarily to finance the completion of the Company's Noble 6-24 well in the Pinedale Anticline field in Sublette County, Wyoming.
Company President Mark Dolar stated, "We're very pleased that the level of investor interest in our Company allowed us to close this private placement in such a strong manner. We are excited to move forward on the completion of the Noble 6-24, with plans to generate gas sales in the near term." The Company will pay finder's fees in the aggregate amount of $141,180 to certain qualified registrants assisting in the private placement (representing 6% of the gross proceeds raised by such finders). The private placement remains subject to the final approval of the TSX Venture Exchange.