Oilexco arranges $16.1-million brokered offering
2005-01-25 13:37 ET - News Release
Mr. Arthur Millholland reports
Oilexco Inc. has entered into an engagement letter with Canaccord Capital (Europe) Ltd. for a private placement of up to 5,385,000 common shares, on a reasonable-efforts basis. The common shares will be priced in pounds sterling at 1.30 pounds sterling each, approximately $3.00 (Canadian); with total gross proceeds of the private placement anticipated to be up to 7.0 million pounds sterling, or approximately $16.1-million (Canadian).
It is anticipated that all subscribers will be European institutions. Closing is expected to occur on or around Feb. 7, 2005. Oilexco intends to use the proceeds of this private placement to augment its cash balances which will be directed at its 2005 United Kingdom North Sea drilling program, which is expected to commence in mid-March using the Transocean semi-submersible Sedco 712.
The private placement is subject to regulatory approval.
We seek Safe Harbor.
OTG