REGINA, SK – ROK Resources Inc. (“ROK” or the “Company“) (TSXV:ROK) is pleased to announce that it has today completed its previously announced bought deal public offering (the “Offering“) of subscription receipts of the Company (the “Subscription Receipts“), at a price of $0.18 per Subscription Receipt (the “Issue Price“), for aggregate gross proceeds of $17.3 million. The Offering was completed through a syndicate of underwriters led by Echelon Capital Markets, as sole lead underwriter and sole bookrunner (the “Underwriters“).
Pursuant to the Offering, the Company issued 95,834,100 subscription receipts at the Issue Price, inclusive of the full exercise of the over-allotment option by the Underwriters of 12,500,100 Units, for additional aggregate gross proceeds of up to $2.3 million.
Each Subscription Receipt will entitle the holder thereof to receive, upon the satisfaction of certain conditions, and without payment of additional consideration or further action, one unit (a “Unit“), consisting of one class “B” common share in the capital of the Company (each a “Common Share“) and one Common Share purchase warrant (each a “Warrant“). Each Warrant will entitle the holder thereof to acquire one additional Common Share at an exercise price of $0.25 for a period of 36 months from the closing date. The Company has applied to list the Common Shares and Warrants underlying the Unit on the TSX Venture Exchange (the “Exchange“).
The Company will use the net proceeds of the Offering, along with the funds drawn from the previously announced senior secured loan facility with Anvil Channel Energy Solutions, to fund the purchase price and related transaction costs payable in connection with the previously announced acquisition of certain oil & gas assets from Federated Co-operatives Limited and its wholly-owned subsidiary 2214896 Alberta Ltd. (the “Acquisition“), and for general working capital purposes.
The gross proceeds from the Offering (less 50% of the Underwriters’ fee) will be held by Odyssey Trust Company (the “Subscription Receipt Agent“), as escrow agent on behalf of the holders of Subscription Receipts and deposited in an interest-bearing trust account to be maintained by the Subscription Receipt Agent, pending the completion of the Acquisition.
Availability of Documents
Copies of related documents, such as the (final) short form prospectus, underwriting agreement, subscription agreement, and asset purchase agreement relating to the Acquisition are available under the Company’s profile on SEDAR at www.sedar.com.