Pulse will immediately begin to carry out its business plan to grow production, cashflow and reserves through an expedited investment in the Company’s 100% controlled Bigoray Enhanced Oil Recovery (“EOR“) project, Bigoray well reactivations and Pulse’s 100% controlled Queenstown drilling program of which Pulse will provide detailed updates in the near future, as required.
Pursuant to the Offering, Pulse will issue 11,137,600 flow-through common shares of the Corporation (“FT Shares“) at a price of C$0.22 per FT Share and 15,953,555 units of the Corporation at a price of C$0.21 per Unit for aggregate proceeds of C$5,800,519, inclusive of the proceeds from the over-allotment option.
Each Unit was comprised of one common share in the capital of the Corporation (each, a “Common Share“) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant“), and each FT Share was a Common Share issued on a “flow-through” basis within the meaning of the Income Tax Act (Canada). Each Warrant entitles the holder thereof to acquire one Common Share (each, a “Warrant Share“) at an exercise price of C$0.30 per Warrant Share for a period of 24 months following the closing of the Offering.
In addition, Pulse has concurrently completed a concurrent private placement with certain strategic investors, issuing, 26,714,285 units (the “Private Placement Units“) of the Company at a price of approximately $0.2058 per Unit for aggregate gross proceeds of $5,500,001.11. At closing, Pulse also paid an investment fee equal to 7% of the Placement by issuing an additional 1,309,524 Units of Pulse.
Pulse CEO, Garth Johnson, commented, “We would like to thank all our past investors, our new investors that participated in this recent financing and Mackie Research Capital Corp. We will use the proceeds of the equity financing to execute our operations plan immediately. A strong, debt-free balance sheet allows us to execute a cost-effective operational program that we feel is best suited to provide long-term value growth. We look forward to advancing our Queenstown drilling operations, our Bigoray reactivations and the EOR implementation at this very exciting time for Pulse Oil and our shareholders.”
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About Pulse Oil Corp.
Pulse is a debt-free, Canadian company incorporated under the Business Corporations Act (Alberta) that is fully funded for its next year of operations including the Bigoray EOR program and drilling in Queenstown. Pulse owns 100% interests in the Bigoray area of Alberta, which includes two Nisku oil Pinnacle Reefs as well as 100% interests in producing assets. Pulse is moving forward to grow production and execute an Enhanced Oil Recovery project to unlock significant value for shareholders through control of approximately 65 net sections of land across the Mannville, Cardium, Pekisko/Shunda, Nisku and Duvernay Shale trends in Western Canada. Pulse will also continue to focus on acquiring affordable, small to medium sized proven oil and gas assets with significant upside. The Company plans to achieve further growth through low-risk, technically diligent drilling within its Queenstown assets, infrastructure ownership and reserve growth utilizing proven enhanced oil recovery techniques and implementation of technology.