Permex Petroleum Corporation (CSE:OIL) revealed it had completed its initial public offering (IPO), raising over C$4mln and shares will resume trading on the CSE tomorrow (May 17) under the symbol 'OIL'.
The oil company issued over 8.12mln shares at C$0.50 a throw for aggregate gross proceeds of C$4,067,750.
Permex has oil and gas assets in Texas and New Mexico in the US and net proceeds are expected to be used, among others, to enhance and develop existing properties by returning shut in wells to production.
The group also plans to start waterflood activities, re-entering and stimulating well candidates that indicate the most potential for production, infill drill shallow fields and buy more assets, it said.
The offering was made via a syndicate of agents led by Canaccord Genuity and included Gravitas Securities Inc.
They have received a cash commission equal to 8% of the gross proceeds, an aggregate of 203,387 shares representing shares issuable pursuant to the agents' 2.5% corporate finance fee and warrants exercisable to acquire up to 650,840 Permex shares for $0.50 per share until May 16, 2021.
Upon the start of trading, it is anticipated that Permex will have over 35.66mln issued and outstanding common shares.