Oilsands Quest (BQI) update #4
Posted by intelledgement on Thu, 20 Dec 07
Management of Oilsands Quest (BQI), our (mostly) Saskatchewan-focused tar sands play, today announced the closing of the exercise of the over-allotment of shares from their recently completed financing deal. An additional 1,650,000 shares and 825,000 warrants were sold for $5 for each share and half-warrant which results in an additional US$7.8 million in net proceeds to BQI. Total net proceeds were approximately US$75.5 million; the company sold 12,650,000 common shares with 6,325,000 common share warrants for US$5 for each unit plus 2,600,000 common shares on a flow-through basis for CDN$6.17. Each warrant entitles the owner to purchase another share of BQI common for US$6.75 anytime over the next two years.
Possibly the completion of this financing deal at a floor price of $5 will halt the PPS erosion we have been experiencing in recent weeks, in particular since the deal was announced last month…the price had fallen from $5.35 the day (19 Nov) before the announcement to as low as $4.21 on Tuesday (18 Dec) but it rallied to close at $4.42 today.