2008-08-01 12:59 PT – News Release
Mr. Steve Smith reports
Otish Energy Inc.’s private placement, previously announced in Stockwatch on July 11, 2008, has been accepted by the TSX Venture Exchange and has been closed by the company.
The proceeds from the brokered private placement totalled $1.1-million, comprising five million flow-through units at 20 cents per unit for proceeds of $1-million, and 550,000 non-flow-through units at 20 cents per unit for proceeds of $110,000.
Each flow-through unit consists of one flow-through common share and one non-flow-through common share purchase warrant; each warrant entitling the holder thereof to purchase one additional 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 warrant entitling 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 acknowledges the assistance of Becher McMahon Capital Markets Inc. (BMCM), which acted as agent in completing the brokered private placement. BMCM (together with Limited Market Dealer Inc.) received in total: (i) an 8-per-cent cash commission; (ii) 8-per-cent agent’s warrants on the sale of the flow-through units (each agent’s warrant entitling the holder to acquire a non-flow-through common share of the company at 20 cents for a period of 24 months from closing); and (iii) 8-per-cent agent’s unit warrants on the sale of the non-flow-through units (each agent’s unit warrant entitling the holder to acquire a non-flow-through common share and a warrant (exercisable at 30 cents for 24 months) of the company at 20 cents for a period of 24 months from closing).
The flow-through financing received will be used to incur eligible exploration expenses on the company’s Quebec properties. All securities issued are subject to a four-month hold; expiring Dec. 1, 2008. Following the issuance of the private placement shares, the company will have a total of 55,291,771 common shares issued and outstanding.
