FINANCING / Gronarctic Resources Private Placement
GRONARCTIC ANNOUNCES PROPOSED PRIVATE PLACEMENT AND SHARE ACQUISITION
Date: 11/17/98 6:38:56 PM
Dateline: CALGARY, ALBERTA
Stock Symbol: GOR
GRONARCTIC RESOURCES INC., an oil and gas company whose common
shares are listed on The Alberta Stock Exchange ("GOR"), is
pleased to announce the closing of a share subscription agreement
with Wild Bill, Sheriff Inc. ("Wild Bill") in which Wild Bill has
acquired 1,097,375 common shares from treasury, by private
placement, at a price of $0.17 per share (the "Private
Placement"). The aggregate cost of these common shares was
$186,553.75.
In connection with the Private Placement, gronArctic has issued
to Wild Bill a convertible debenture in the principal amount of
$413,446.25, bearing interest at a rate of 15% per annum. The
debenture is convertible into non-voting common shares of
gronArctic at a conversion price equal to the total asset value
of gronArctic at the time of the conversion divided by the total
number of outstanding shares. The proceeds from the sale of the
debenture and the shares will be used to retire existing debt of
gronArctic and provide additional working capital.
In order to facilitate the above transactions and pursuant to an
Annual General and Special Meeting of the Shareholders of
gronArctic held on August 31, 1998, gronArctic amended its
articles to create a new class of non-voting common shares and a
new series of preferred shares. At the same meeting, the
shareholders of gronArctic approved the Private Placement and
elected a new slate of directors consisting of Camille P. Hanna,
Gary L. Lee and Leonard M. Sali.
Upon completion of the Private Placement and conversion of the
Series 1 Preferred Shares previously acquired by Wild Bill, Wild
Bill will own approximately 33.8% of the common shares of
gronArctic. gronArctic's objective is to become a significant
resource based development company focused on the identification,
acquisition and development of oil and gas opportunities, both
domestically and internationally.
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