"No Brainer Investment" Kelt Exploration (KEL-T) Feb 25, '15 has determined to issue, by way of a non-brokered private placement, 3.3 million common shares on a "flow-through" basis in respect of Canadian development expenses ("CDE") at a price of $8.60 per share (the "Private Placement"), resulting in gross proceeds of $28.4 million. The flow-through share issue is priced at a 10% premium to the volume weighted average trading price of Kelt's common shares for the three trading days ending February 24, 2015 of $7.82 on the Toronto Stock Exchange ("TSX"). Proceeds from the Private Placement will be used to partially finance the Company's drilling and completion expenditures during the remainder of 2015.
Certain directors, officers and employees of the Company have subscribed to purchase 1.7 million flow-through common shares for gross proceeds of $14.7 million, representing approximately 52% of the aggregate issue. The Private Placement is expected to close, in one or more tranches, by mid-March 2015.
Kelt shall, pursuant to the provisions in the Income Tax Act (Canada), incur eligible Canadian development expenses (the "Qualifying Expenditures"), after the applicable closing date(s) and prior to December 31, 2015 in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of the subject flow-through common shares. Kelt shall renounce the Qualifying Expenditures so incurred to the purchasers of the flow-through common shares in an amount equal to $8.60 per share on or prior to December 31, 2015.
The Private Placement is subject to certain conditions including normal regulatory approvals and specifically, the approval of the TSX. The flow-through common shares will be offered in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec. The common shares issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the applicable date(s) of completion of the Private Placement, in accordance with applicable securities legislation.
About Kelt
Kelt is a Calgary, Alberta, Canada-based oil and gas company focused on exploration, development and production of crude oil and natural gas resources, primarily in west central Alberta and northeastern British Columbia.
Kelt Exploration Ltd.
Suite 300, 311 - 6th Avenue SW
Calgary, Alberta, Canada T2P 3H2
David J. Wilson
President and Chief Executive Officer
(403) 201-5340
or
Sadiq H. Lalani
Vice President, Finance and Chief Financial Officer
(403) 215-5310
Or visit our website at www.keltexploration.com |
