Greentree Gas completes first tranche for $402,600
Greentree Gas & Oil Ltd (C:GGO)
Shares Issued 38,684,247
Last Close 12/5/2007 $0.115
Friday December 07 2007 - News Release
Mr. Duncan Hamilton reports
GREENTREE ANNOUNCES COMPLETION OF THE FIRST TRANCHE OF A PRIVATE PLACEMENT OFFERING AND AMENDMENT OF OFFERING
Greentree Gas & Oil Ltd. successfully closed the first tranche of a previously announced private placement (see Greentree's news release in Stockwatch on Oct. 30, 2007). The first tranche consisted of 3,131,363 units at a price of 11 cents per unit and 387,666 flow-through common shares at a price of 15 cents per flow-through common share, for total gross proceeds of $402,600. Each unit consists of one common share and one common share purchase warrant of Greentree. Each whole warrant issued entitles the holder to purchase one common share of Greentree at a price of 16 cents at any time until Dec. 7, 2008. All the securities issued pursuant to the first tranche of the private placement are subject to a four-month hold period expiring April 8, 2008.
Due to the strong demand for units, Greentree has amended the terms of the offering, such that up to $1-million of units, and up to $250,000 of flow-through shares will be offered, subject to TSX Venture Exchange approval, instead of $625,000 of units and $625,000 of flow-through shares. The offering, as amended, will now comprise a maximum of 9,090,909 units (or 9,090,909 common shares and 9,090,909 warrants) and 1,666,667 flow-through common shares. All other terms of the offering shall remain unchanged. A second tranche of the offering is anticipated to close on Tuesday, Dec. 11, 2007, and a final tranche is expected to close on or before Thursday, Dec. 20, 2007.
The offering is non-brokered. Finders' fees of 10 per cent of the gross proceeds of the first tranche of the offering are payable in cash to Capital Street Group Investment Services Inc.
The net proceeds to Greentree from the offering will be used to finance evaluation of additional shallow oil properties, to rework and restimulate existing producing wells, to enhance production and to reduce outstanding debt.
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