BQI (Oilsands Quest) News April 29, 2009 - 12:00 PM EDT
CALGARY, April 29 /CNW/ - Oilsands Quest Inc. (NYSE Amex: BQI) (the "Company") announced today that it has commenced a marketed public offering on a best efforts basis (the "Offering") of up to 25 million units ("Units") in the United States under an effective shelf registration statement on file with the Securities and Exchange Commission ("SEC") and in all provinces of Canada, except Quebec, by way of a shelf prospectus filed pursuant to the Multi-jurisdictional Disclosure System.
Each Unit will be comprised of one common share ("Share") and one-half of a common share purchase warrant of the Company ("Warrant") with each whole Warrant entitling the purchaser to purchase one Share of the Company for a period of 24 months following closing of the Offering.
The Offering will be made by a syndicate of agents (the "Agents") led by Genuity Capital Markets USA Corp. and TD Securities (USA) LLC in the United States and Genuity Capital Markets and TD Securities Inc. in Canada. The Company has agreed to grant the Agents an over-allotment option to purchase up to an additional 15% of the Units sold pursuant to the Offering, either separately or as Units. The Agents may exercise the over-allotment option, in whole or in part, at any time up to 30 days from the closing of the Offering. The Offering is subject to certain conditions, including stock exchange approval.
The Offering will be priced in the context of the market with final terms of the Offering to be determined at the time of pricing. The Company anticipates that the pricing of the Offering will be announced after the close of markets today.
The Company will use the funds to continue its testing activities at Test Sites 1 and 3, continue its exploration activities on its existing permits and licenses and for general corporate purposes. Specific allocations of the proceeds for such purposes have not been made at this time.
The Offering is expected to close on or about May 12, 2009.
