Hillcrest Petroleum Ltd (CVE:HRH) (OTCMKTS:HLRTF) (FRA:7HI) announced that it has closed a non-brokered private placement financing for gross proceeds of up to C$1.27 million, which involved the issuance of up to 25,340,000 units of the company at a price of $0.05 per unit.
Hillcrest said it intends to use the offering proceeds for well maintenance on the company’s existing wells, preparation for the drilling of a new well, retirement or reduction of payables, the payment of provincial royalties related to its oil and gas operations, and further development of the company’s energy portfolio through the establishment of a local energy laboratory, as well as for general working capital purposes.
Each unit consisted of one common share and one share purchase warrant, exercisable into an additional common share of the company at a price of $0.10 per share for a period of two years.
Hillcrest noted that one of its corporate officers subscribed for 1.5 million units of the private placement.
The offering is subject to a four-month hold period expiring on May 19, 2021.
The company added that in connection with the offering, it paid a cash finder’s fee of $33,760 and issued 675,200 non-transferable finder’s warrants, with each warrant entitling the holder to purchase one additional company share at a price of $0.10 per share for a period of two years from the offering’s closing date.
Vancouver-based Hillcrest Petroleum is a junior energy production company that is transitioning from a traditional oil and gas business model solely focused on reserve growth toward a diversified business model that transforms earnings into clean technology investments.
This is expected to create dynamic efficiencies that will enable the company to balance short-term revenue maximization with long-term business disruption risk and expand the company’s reach into a global market.
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