Calgary (pcJ News Briefs) – PetroShale Inc. (TSX-V: PSH; OTCQX: PSHIF) has engaged Haywood Securities Inc. as sole agent for a commercially reasonable best efforts marketed public offering of a minimum of 77,777,778 common voting shares and a maximum of 111,150,000 shares, at $0.90 per share, for minimum proceeds of $70,000,000 and maximum proceeds of $100,035,000.
In connection with the offering, PetroShale has granted to the agent an over-allotment option, exercisable in whole or in part for a period of 30 days from closing of the offering, to offer for sale up to an additional 10% of the number of shares sold under the offering, to the offering price, to cover over-allotments, if any.
Burnet, Duckworth & Palmer LLP and Burstall Winger Zammit LLP are acting legal counsel to PetroShale and the agent.
M. Bruce Chernoff, PetroShale’s largest shareholder, Executive Chairman & CEO and a director will purchase, either directly or indirectly through affiliated entities beneficially owned or controlled by him, a minimum of 38,888,889 shares and maximum of 55,555,556 shares. It is a condition of the offering that at least 38,888,889 shares will be issued, exclusive of any shares purchased by Chernoff.
In the event that the maximum offering is fully completed and the over-allotment option is exercised in full and Chernoff acquires the maximum number of common shares he has agreed to acquire, Chernoff would own 67,739,139 common shares, representing approximately 45.2% of the issued and outstanding common shares on an undiluted basis.
PetroShale intends to use the net proceeds for debt repayment, its increased capital program and for general corporate purposes.
PetroShale is an oil company engaged in the acquisition, development and consolidation of interests in the North Dakota Bakken / Three Forks.
photo credit: PetroShale