Simba Energy Inc. (TSXV:SMB,FWB:GDA,OTCQX:SMBZF) has announced a non-brokered private placement for gross proceeds of up to C$3.0 million. Net proceeds from the placement will be put towards funding exploration commitments related to Simba’s production sharing contracts in Kenya, general working capital purposes, and retirement of certain debt.
As quoted in the press release:
The Company is to issue up to 50 million units (the “Units”) at a price of Cdn$0.06 per Unit, with each Unit consisting of one (1) common share in the capital of the Corporation and one (1) full share purchase warrant (a “Warrant”). Each Warrant is exercisable for four years to purchase one additional common share at a price of Cdn$0.10 during the first two year period, or at a price Cdn$0.15 for the next two year period. A hold period of four months and one day from date of issue will apply to all securities issued pursuant to the Private Placement.