Strategic Oil & Gas closes strategic financing transaction
On February 29, 2016, Strategic Oil & Gas Ltd. (Strategic) announced that it upsized and closed a strategic financing transaction, following a review of its financing alternatives, of 94,851 secured convertible notes at a price of C$1,000 per note, for aggregate gross proceeds of C$94,851,000. Insiders, including officers, employees and directors of the company, subscribed for a significant portion of the offering, which also received support from existing and new institutional investors.
The debentures have a 5-year term and bear interest at a rate of 8% payable semi-annually (subject to, at the company's option, being paid-in-kind in equivalent principal amount of debentures for the first two years) and are convertible into common shares of Strategic at a price of C$0.09 per share.
RBC Capital Markets continues to act as financial advisor to the company and acted as sole agent for Strategic in this offering.
The proceeds of the offering will be used to repay the company's existing credit facilities, the bridge loan from its major shareholder and provide funding for the winter capital program.
Strategic is a junior oil and gas company committed to growth by exploiting its light oil assets in Canada
Further information can be found on Marketwired's website.