(CUDA.V) Nov. 9, 2018 – Cuda Oil and Gas Inc. has closed the first tranche of its previously announced private placement of common shares of the company for gross proceeds of approximately $7.2 million.
The company issued 2,981,212 common shares at a price of $2.40 per share pursuant to the first tranche of the offering. The common shares issued pursuant to the offering are subject to a four-month hold period. The company anticipates using the net proceeds of the offering for exploration and development activities, acquisitions and for working capital and general corporate purposes. Cuda anticipates that it will complete a second tranche of the offering in November 2018.
In connection with the offering, the company has entered into an agency agreement with a syndicate of investment dealers led by KES 7 Capital Inc., with co-joint book runners Eight Capital and Cormark Securities Inc.
Certain officers and directors of the company subscribed for a total of 198,312 common shares pursuant to the first tranche of the offering for an aggregate subscription price of $475,949. The subscriptions by officers and directors are related-party transactions within the meaning of applicable securities laws that are exempt from the formal valuation and minority approval requirements applicable to related party transactions.
Cuda Oil and Gas is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long-term focus on large, light oil resource-based assets across North America, including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.