Each Unit consists of one common share of Source Rock (each a “Common Share” and collectively, the “Common Shares”) and one-half of one Common Share purchase warrant (each whole warrant a “Warrant” and collectively, the “Warrants”). Each Warrant entitles the holder to purchase one Common Share of Source Rock at an exercise price of $1.25 for a period of two years.
The Offering was completed through a syndicate of underwriters co-led by PI Financial Corp. (as Sole Bookrunner) and Acumen Capital Finance Partners Limited, together with Haywood Securities Inc., Canaccord Genuity Corp. and ATB Capital Markets Inc.
Capital Structure & Working Capital
Source Rock currently has 44,896,645 Common Shares and 7,667,050 Warrants (at an exercise price of $1.25) issued and outstanding. As disclosed in the Prospectus, Source Rock also has 2,490,000 incentive stock options outstanding.
Source Rock currently has working capital of approximately $14,000,000 ($0.31 per Common Share) and does not have any debt.
Source Rock intends to use its working capital to acquire additional oil and gas royalties in the Western Canadian Sedimentary Basin.
Additional information about Source Rock can be found in the Prospectus, which is available under Source Rock’s profile on SEDAR at www.sedar.com.
The securities under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States. Accordingly, the securities may not be offered, sold or delivered, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act), unless being done so pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Source Rock in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.