CALGARY, Alberta, Aug. 10, 2018 (GLOBE NEWSWIRE) — Groundstar Resources Limited (TSXV:GSA) (the “Company”) is pleased to announce that it has closed on the second tranche of its previously announced non-brokered private placement of a maximum of up to 20 million units in the capital of the Company (the “Common Units”) at a price of $0.01 per unit, each unit consisting of a common share in the capital of the Company (“Common Share”) and a common share purchase warrant (a “Warrant”) for gross proceeds of up to CAD$200,000 (the “Common Offering”). Each Warrant will permit the holder to acquire one additional Common Share at a price of $0.05 in the first year from closing and at $0.075 in the second year from closing. The Company issued a total of 16,650,000 Common Units for gross proceeds of $166,500 pursuant to the closing of the first tranche of the Common Offering. Pursuant to the closing of the second tranche of the Common Offering, the Company issued an additional 500,000 Common Units for total gross proceeds of $5,000, bringing the total issuance to 17,150,000 Common Units for gross proceeds of $171,500. The Common Shares and Warrants issued pursuant to the second tranche of the Common Offering are subject to a four month hold from the date of the closing, such hold period expiring on December 7, 2018. Closing of the second tranche of the Common Offering and the applicable pricing thereof are subject to final approval of the TSXV.
The Company will utilize the net proceeds from the Common Offering for general corporate purposes and to seek different corporate opportunities, which may involve drilling new wells, seeking a farm-in opportunity or acquiring producing assets.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Groundstar Resources Limited
Incorporated in 1968, Groundstar Resources Limited is a publicly traded oil and gas company actively growing a portfolio targeting producing oil and gas assets with development opportunities and exploration upside. The Company’s current portfolio of resource assets provides both near term and longer-term potential. Groundstar is quoted and trades under the ticker symbol “GSA” on the TSX Venture Exchange.