Rolland Energy closes $1.84-million private placement
2007-10-18 21:02 ET - News Release
Mr. Michael McLellan reports
ROLLAND ENERGY CLOSES PRIVATE PLACEMENT OF $1.8 MILLION
Rolland Energy Inc. has completed a private placement by issuing 3,680,470 units to investors in British Columbia, Alberta, Ontario and Quebec at a price of 50 cents per unit, for gross proceeds to the corporation of $1,840,235.
Each unit comprises eight flow-through common shares, two non-flow-through common shares and 10 non-flow-through common share purchase warrants. Each warrant entitles its holder to acquire one additional non-flow-through common share of the corporation at a price of 10 cents per share until Oct. 18, 2009.
"In raising these funds, the corporation has met the first major milestone of its restructuring plan, which was to ensure that the corporation is financially viable," said Michael McLellan, president and chief executive officer of the corporation. "The corporation now has the financial resources to address its short-term liabilities, and to focus on its operational and financing objectives from a position of relative strength. This would not have been possible without contributions made by the corporation's board of directors and employees, nor would it have been possible without the support of the corporation's lender and its trade creditors," added Mr. McLellan.
Proceeds from the financing will be used for general working capital, and to finance exploration and drilling opportunities. Of the money raised, insiders of the corporation invested a total amount of $87,000. In connection with the private placement, the corporation paid finders' fees of a total amount of $174,324 to various individuals.
The securities issued in connection with the private placement are subject to a four-month hold period in accordance with applicable securities laws and the policies of the TSX Venture Exchange. As a result of the closing of the private placement, the corporation has 90,552,989 common shares issued and outstanding.
We seek Safe Harbor.