VANCOUVER, BC / ACCESSWIRE / July 25, 2017 / Oyster Oil and Gas Ltd. ("Oyster" or the "Company") (OY: TSXV, 13L: FSE) is pleased to announce that it has closed its concurrent non-brokered private placements of units (each, a "Unit") and convertible debentures (the "Convertible Debentures") for gross proceeds of CAD$1,300,915.
In connection with closing, the Company has issued 300,000 Units, at a price of CAD$0.50 per Unit, for gross proceeds of CAD$150,000. Each Unit consists of one common share of the Company and one transferable common share purchase warrant (each, a "Unit Warrant"). Each Unit Warrant entitles the holder to acquire a further common share at a price of CAD$0.55 for a period of twenty-four months.
The Company has also issued Convertible Debentures in the principal amount of CAD$1,150,915. The Convertible Debentures accrue interest at the rate of 10% per annum, are convertible at the option of the holder into common shares of the Company at a deemed price of the lesser of CAD$0.50 or a 20% discount to the AIM listing offering price of the Company's common shares, subject to compliance with TSX Venture Exchange minimum pricing policies, and have a term of twelve months, subject to acceleration upon completion of the AIM listing. Accrued interest on the Convertible Debentures may be converted into common shares at a minimum conversion price of not less than the "Market Price" (as defined in the policies of the TSX Venture Exchange) at the time such interest becomes due and payable. Subscribers for Convertible Debentures have also been issued 575,458 detachable common share purchase warrants (each, a "Debenture Warrant") for every CAD$2.00 of principal Convertible Debentures subscribed for. Each Debenture Warrant entitles the holder thereof to acquire one Common Share at a price of CAD$0.55 until the expiry of the Convertible Debentures.
In connection with the issuance of the Convertible Debentures, the Company has paid a finders' fee of CAD$4,038 and issued 14,684 share purchase warrants exercisable at a price of CAD$0.55 for a period of twenty-four months to VSA Capital Limited ("VSA"). In connection with the Company's private placements closed January 25, 2017 and May 10, 2017, the Company also announces that it has obtained approval from the TSX Venture Exchange to pay aggregate finders' fees of CAD$4,250 and issue 12,500 share purchase warrants to VSA. 4,000 of the warrants are exercisable at CAD$0.20 until January 25, 2019 and 8,500 are exercisable at CAD$0.40 until May 10, 2019.