Under the offering, the company plans to issue up 20 million units at $0.05 apiece, with each unit consisting of one common share and one-half of a share purchase warrant. Each whole warrant will be exercisable into an additional common share for $0.07 apiece for a period of two years.
In addition to funding the expansion of the West Hazel oil asset, Hillcrest said it will use some of the proceeds to retire certain payables related to the issuer's oil and gas assets in Saskatchewan and for general working capital purposes.
All securities issued will be subject to a four-month hold period in accordance with applicable securities laws, according to a statement.
In other company news, Vancouver-based Hillcrest said it has granted incentive stock options to certain directors, officers, consultants and employees to purchase up to 7.1 million common shares. The options are exercisable on or before July 8, 2025, at $0.05 per share.
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