16 Aug 2007capital raising announcement● NeutralMajor
GeoPetro sold 2,002,599 shares plus five-year warrants (600,779 shares at $4.50) to investors in a private placement for $7,710,006, paying a $385,500 cash fee and 60,078 warrants at $3.85 to placement agent Energy Capital Solutions. It must register the shares for resale, and owes up to 200,259 extra shares to investors if registration deadlines are missed. Existing shareholders are diluted; the press release says proceeds fund exploration and development and working capital, and shares outstanding rise to 31,549,674.
What it means for a shareholder
600,779 new shares at $4.50 to raise about $2.7m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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