Petroamerica raises $19.11 million through private placement

Petroamerica Oil Corp. (formerly Cantrell Capital Corp.), a Canada-based company holding oil and gas contracts in Colombia, has completed its private placement of 28.6 million units at a price of CAD0.7 ($0.66) per unit raising gross proceeds of CAD20.02 million ($19.11 million).

Announcement (October 23, 2009):

Petroamerica has agreed to place 28.6 million units at a price of CAD0.7 ($0.66) per unit. Petroamerica would raise gross proceeds of CAD20.02 million ($19.11 million) through this private placement.

Each unit consists of one common share and one share purchase warrant entitling the holder to purchase an additional share at CAD1.25 ($1.19) per share for five years.

Petroamerica Oil has granted options to new officers and employees to purchase 1.12 million shares at a price of CAD0.7 ($0.66) per share for ten years.

Deal Value (US$ Million) 19.11
Deal Type                Private Placement
Sub-Category             None
Deal Status              Completed: 2009-11-04

Deal Participants

Target (Company)   Cantrell Capital Corp.
Acquirer (Company) Undisclosed Investors

Deal Rationale

Petroamerica Oil intends to use the proceeds from the placement to advance its exploration programs on its hydrocarbon projects in Colombia.

Offer Price ($ per share) 0.66
No. Shares Issued         28600000

Related terms: canada, colombia, exploration, oil, oil and gas, Private Placement