CA - TAG Oil upsizes prices C$22 common stock offering
- TAG Oil ( OTCQX:TAOIF ) upsized an overnight marketed common stock offering to raise C$22M, from the prior estimate of C$20M.
- The company signed an underwriting agreement with a syndicate of underwriters led by Research Capital and Echelon Capital Markets for the sale of 55M shares at C$0.40 apiece to raise C$22M in gross proceeds.
- Certain directors and officers of TAG will also participate in the offering, the company said in an Oct. 12 press release.
- TAG granted the underwriters a 30-day option to buy up to an additional 15% of the shares sold in the offering. If the option is fully exercised, the company would receive C$25.3M in gross proceeds.
- TAG intends to use the net proceeds to fund Q4 2022 and 2023 operational and drilling budget at the Abu Roash 'F' reservoir in the Badr Oil Field in Egypt; conduct evaluations for acquisition opportunities in Egypt; place equipment inventory orders for 2024 drilling campaign; and for unallocated working capital.
- The offering is expected to close around the week of Nov. 1.
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TAG Oil upsizes, prices C$22 common stock offering