2008-07-11 10:42 PT – News Release
Mr. Steve Smith reports:
Otish Energy Inc. has arranged a brokered private placement with Becher McMahon Capital Markets Inc. to raise up to $1.25-million by the issuance of up to five million flow-through units at 20 cents per unit for proceeds of $1-million and up to 1.25 million non-flow-through units at 20 cents for proceeds of $250,000. Each flow-through unit consists of one flow-through common share and one non-flow-through common share purchase warrant. Each flow-through common share purchase warrant will entitle the holder thereof to purchase one common share of the company at a price of 30 cents per share for a period of 24 months following the closing of the offering. Each non-flow-through unit consists of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder thereof to purchase one common share of the company at a price of 30 cents per share for a period of 24 months following the closing.
The company shall pay the agent a commission of 8 per cent of the gross proceeds of the offering. In addition, the agent will be issued on the closing agent’s compensation options entitling the agent to subscribe, for a period of 24 months following the closing, for that number of units at a price of 20 cents per unit, equal to 8 per cent of the total of flow-through and non-flow-through units issued under the offering for a period of 24 months following the closing, to purchase non-flow-through common shares of the company at a price of 30 cents per common share.
The proceeds from the sale of the flow-through units will be used by the company to finance the exploration expenditures on its properties. The proceeds from the sale of the non-flow-through units will be used to finance exploration expenditures or for general working capital purposes.
Closing is subject to execution of a definitive agreement, completion of satisfactory due diligence, successful completion of the offering and receipt of all required regulatory approvals, including, without limitation, the approval of the TSX Venture Exchange.
We seek Safe Harbor.
