TAG Oil Ltd. (the "Company" or "TAG Oil") (TSX: TAO and OTCQX: TAOIF) is pleased to announce that it has closed the previously announced short form prospectus offering for aggregate gross proceeds of C$14,995,500 (the "Offering"). Pursuant to an agency agreement dated effective as of February 15, 2017, the Company, through a syndicate of agents co-led by Mackie Research Capital Corporation and Pareto Securities Ltd., and including
Eight Capital, GMP Securities L.P., Roth Capital Partners LLC, TD Securities Inc., M Partners Inc. and PillarFour Securities LLP (collectively, the "Agents"), issued 23,070,000 units ("Units") of the Company at a price per Unit of C$0.65. In connection with the increased size of the Offering, the previously announced over-allotment option granted to the Agents was removed from the Offering.
Each Unit consists of one common share of the Company ("Common Share") and one-half of one Common Share purchase warrant (each whole warrant a "Warrant"). Each Warrant shall be exercisable into one Common Share at a price of C$0.90 for 24 months following the closing date of the Offering. The Company is also pleased to announce that it has received conditional approval to have the Warrants listed for trading on the Toronto Stock Exchange, subject only to compliance with certain standard listing conditions. The Common Shares and Warrants issued pursuant to the Offering are expected to trade under the symbols "TAO" and "TAO.WT", respectively.
Certain insiders of the Company participated in the Offering by purchasing an aggregate of 1,674,846 Units. Accordingly, the Offering constituted to that extent a "related party transaction" under applicable Canadian securities laws. The Company is relying on the exemptions from the formal valuation and minority approval requirements found in sections 5.5(a) and section 5.7(1)(a) of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions as the fair market value of the Offering, insofar as it involves interested parties, is not more than 25% of the Company's market capitalization. The Company filed an initial material change report on February 23, 2016, however certain details of the Offering and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company will be filing a supplemental material change report pursuant to applicable securities legislation.
About TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a development-stage international oil and gas producer with established high netback production, development and exploration assets, including production infrastructure in New Zealand and Australia. TAG Oil is poised for significant reserve and production growth with several oil and gas fields under development and high-impact exploration in proven oil and gas fairways. TAG Oil is debt-free and currently has 85,282,252 shares outstanding.
SOURCE: TAG Oil Ltd.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.