Nextraction Closes Private Placement
Nextraction announced the successful completion of a bought deal financing for 1,157,400 units ("Units") of the Company at a price of $2.16 per Unit (the "Offering") for aggregate gross proceeds to the Company of $2,499,984. Each Unit consists of one common share in the capital of the Company priced at $1.0005 each and one common share in the capital of the Company issued on a "flow-through" basis under the Income Tax Act (Canada) priced at $1.1595 each. NCP Northland Capital Partners Inc. ("Northland") acted as underwriter for this placement and has received a commission of 6.0% of the gross proceeds.
All of the shares issued in this placement will be subject to a four month resale restriction from the date of closing of March 24, 2011.
For further information regarding the financing press releases, please refer to Nextraction's press releases dated February 16, 2011, March 1, 2011 and March 4, 2011.
The net proceeds from the Offering will be used for development of the Company's newly acquired Provost property, which includes the acquisition of four producing light oil wells and the drilling of two horizontal wells this summer. The proceeds will also be for general working capital purposes.