- Jericho Oil (TSXV:JCO) has completed its previously announced non-brokered private placement for gross proceeds of C$5 million
- The company issued 50 million units at a price of 10 cents each, with the units consisting of one common share and one common share purchase warrant
- These warrants will be exercisable at a price of 13 cents for a period of 36 months from the date of issuance
- The company will use the proceeds to capitalise on the current oil market downturn by making strategic acquisitions
- Jericho Oil (JCO) is currently steady and is trading at 18 cents per share
Jericho Oil (TSXV:JCO) has completed its previously announced non-brokered private placement for gross proceeds of C$5 million.
Under the terms of the placement, the Vancouver-based company issued a total of 50 million units at a price of 10 cents each. The units were comprised of one common share in the capital of the company and one common share purchase warrant.
The warrants will entitle the holder to acquire an additional common share at a price of 13 cents, exercisable over a period of 36 months from the date of issuance.
Certain insiders of Jericho Oil also completed in the placement, subscribing for a total of 17.2 million units. Such participation was exempt from prior shareholder approval, since the value of the units purchased represented less than 25 per cent of the company’s overall market capitalisation.
All of the securities issued under the placement are subject to a mandatory holding period, which expires on October 13, 2020.
While the financing remains subject to the final approval of the TSX Venture Exchange, Jericho Oil plans to use the proceeds to fund the strategic acquisition of assets during what is currently a depressed market.
The dual impact of COVID-19 and the Russia-Saudi oil price war earlier this year has resulted in a global energy industry of significantly reduced value, in which Jericho Oil hopes to acquire “high-quality assets in special situations.”
Brian Williamson, CEO of Jericho Oil, noted the stable backing the company has seen despite ongoing market volatility.
“We are grateful for the strong support of our long term, major investors, who despite these very challenging times, share our belief that the current situation could present tremendous growth opportunities for the company,” he added.
Jericho Oil (JCO) is currently steady and is trading at 18 cents per share, as of 1:23pm EDT.