CALGARY, ALBERTA–(Marketwired – Dec. 10, 2013) – Alexander Energy Ltd. (TSX VENTURE:ALX) –
Alexander Energy Ltd. (“Alexander” or the “Corporation“) is pleased to announce that it has received the written consent of a majority of its shareholders to: (i) its previously announced non-brokered private placement of up to an aggregate of approximately $26.5 million (the “Private Placement“); and (ii) the appointment of a new management team and board of directors (collectively, the “New Management Team“).
Alexander is also pleased to announce that it has today closed an initial tranche of the Private Placement (the “Initial Closing“), issuing an aggregate of 119,735,183 units (“Units“) at a price of $0.15 per Unit for gross proceeds of approximately $17.9 million to the New Management Team and certain other individuals identified by the New Management Team. Each Unit is comprised of one common share of Alexander (“Common Share“) and one Common Share purchase warrant (a “Warrant“). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.20 for a period of five years. The Warrants will vest and become exercisable as to one-third upon the 20-day weighted average trading price of the Common Shares (the “Market Price“) equaling or exceeding $0.30, an additional one-third upon the Market Price equaling or exceeding $0.40 and a final one-third upon the Market Price equaling or exceeding $0.50. Alexander will close the remaining portion of the Private Placement at a future date, currently anticipated to occur in late December but, in any event, not later than January 14, 2014. The Private Placement remains subject to the final approval of the TSX Venture Exchange.
Alexander is also pleased to announce that, following the Initial Closing, the previously announced appointment of the New Management Team was completed. The New Management Team is led by Richard McHardy as President & Chief Executive Officer, Michelle Wiggins as Vice President, Finance and Chief Financial Officer, Ed Wong as Vice President, Engineering, Albert Stark as Vice President, Operations, Fotis Kalantzis as Vice President, Exploration and Thomas Boreen as Vice President, Geology. The board of directors of Alexander is now comprised of Richard McHardy, Michael Stark, Don Archibald, Reg Greenslade and Grant Greenslade. Sanjib Gill has been appointed as Corporate Secretary. It is anticipated that the shareholders of Alexander will be asked to approve, at a special meeting of shareholder called for such purpose, a change of the Corporation’s name to “Spartan Energy Corp.”
In conjunction with the completion of the Initial Closing, Alexander has granted options to acquire 19,163,332 Common Shares, 17,055,365 of which were granted to the new directors and officers of Alexander. Each grant of options is for a five year term. The options vest over three years (1/3 on each of the first, second and third anniversary of the grant date). The options are exercisable at a price of $0.20 Common Share.
Alexander confirms that it intends to conduct the previously announced rights offering (the “Rights Offering“) by way of a rights offering circular which will be mailed to all shareholders as of the record date for such offering (the “Record Date“). Pursuant to the Rights Offering, each shareholder as of the Record Date will be issued one right (“Right“) for each Common Share held on the Record Date, entitling that holder to purchase one Common Share for every eight Rights held at a price of $0.15 per Common Share at or before the expiry timeof