In connection with the Offering, the Company paid an eligible arm's-length finder a cash placement fee of 8% of the gross proceeds of a portion of the Offering as well as common share purchase warrants equivalent to 8% of the gross proceeds made by purchasers introduced by such finder. In total, the Company paid $4,000 in cash and issued 80,000 non-transferable finder's warrants (with the same terms as the share purchase warrants) to eligible finders. All securities issued in connection with the offering will be subject to a hold period in accordance with applicable securities legislation that expires on July 19, 2016.
Net proceeds from the Offering will be applied towards the payment of current liabilities, exploration and development of the Company's oil and gas properties and for general working capital purposes.
For further information please contact Andrew H. Rees at (403) 919-7900.
ON BEHALF OF THE BOARD
(signed) 'Andrew H. Rees'
Andrew H. Rees
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company. Readers are cautioned not to place undue reliance on forward looking statements.
Wellstar Energy Corp. issued this content on 21 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 21 March 2016 22:35:10 UTC
Original Document: http://www.wellstarenergy.com/s/NewsReleases.asp?ReportID=743237&_Type=News-Releases&_Title=WellStar-Announces-Closing-of-Private-Placement