Rok Resources increases public offering to $15-million

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Rok Resources Inc. [ROK-TSXV] has amended the terms of its previously announced offering of subscription receipts, subject to TSX Venture Exchange approval. Under the amended terms of the offering, a syndicate of underwriters led by Echelon Capital Markets have agreed to purchase 83,334,000 subscription receipts from the treasury of the company, at a price of 18 cents per subscription receipt and offer them to the public by way of short form prospectus for total gross proceeds of $15,000,120.

Each subscription receipt will entitle the holder to receive, upon the satisfaction of certain conditions, including the completion of the acquisition and without payment of additional consideration or further action, one unit, consisting of one common share of the company and one common share purchase warrant. Each warrant is good to buy one additional share at an exercise price of 25 cents for 36 months from closing. The company will apply to list the common shares and warrants underlying the unit on the exchange. Rok granted the underwriters an option to purchase up to an additional 15% of the subscription receipts at the issue price.

The company will use the net proceeds from the offering to finance a portion of the cash consideration of the acquisition of certain oil and gas assets from Federated Co-operatives Ltd. in addition to transaction costs and other general corporate purposes.

The offering is expected to close on or about February 24, 2022 and is subject to customary closing conditions, including regulatory approval.

Rok Resources is primarily engaged in exploring for petroleum and natural gas development activities in Saskatchewan. The company recently entered into an arms-length definitive agreement to acquire certain oil & gas assets primarily in Saskatchewan and Alberta, from Federated Co-operatives Limited and its wholly-owned subsidiary 2214896 Alberta Ltd. for total consideration of approximately $72 million before closing adjustments.


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