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Stans Energy (TSXV:HRE) is proposing a non-brokered private placement of up to C$2 million. The shares will be sold on a best efforts basis. Proceeds of the placement will be used to fund the company’s legal costs for collection of US$118 million from the Kyrgyz Government.
Stans Energy (TSXV:HRE) is proposing a non-brokered private placement of up to C$2 million. The shares will be sold on a best efforts basis. Proceeds of the placement will be used to fund the company’s legal costs for collection of US$118 million from the Kyrgyz Government.
As quoted in the press release:
The Offering is for up to $2,000,000 (the “Offering Amount”) consisting of up to 26,666,667 units at a price of $0.075 per Unit. Each Unit will consist of one common share in the capital of the Company and one-half of one share purchase warrant (each whole warrant a “Warrant”). Each Warrant will be exercisable to acquire one additional common share of the Company for a period of 24 months at a price of $0.10 per common share.
The expiry date of the Warrants may be accelerated by the Company in the event that (the “Acceleration Event”) the closing price of the common shares of the Company on the TSX Venture Exchange, or such other exchange on which the Common Shares may primarily trade from time to time, at a volume-weighted average price of $0.20 for a period of least 20 consecutive trading days at any time after June 21, 2015. If the Acceleration Event occurs the Company may, at its option, accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire at 4 p.m. (Toronto time) on the date which is the earlier of: (i) the 30th day after the date on which such notice is given by the Company in accordance with the terms of the Warrants; and (ii) the actual expiry date of the Warrants.
Stans intends to use the gross proceeds from the Offering is to fund the legal costs associated with the Company’s collection of US$118 million from the Kyrgyz Government and general corporate purposes.
The Offering is open to all accredited investors and financial institutions, subject to certain limitations. Any existing shareholder interested in participating in the Offering should contact the Company in accordance with the contact information set forth below. The Company may pay registrants a cash commission of 5% of the gross proceeds of this Offering in respect of investors solicited or introduced by such registrants. Registrants will also be entitled to receive warrants to purchase that number of common shares of the Company as equals 5% of the total offering subscribed by investors solicited or introduced by such registrants, at an exercise price of $0.17 per share, for a term of 24 months.
Click here to read the Stans Energy (TSXV:HRE) press release