ROK Resources Inc. has closed on its previously announced bolt-on acquisition (the "Acquisition") of certain non-operated producing oil and gas assets (the "Asset") in Southern Saskatchewan, along with associated land leases, a facility, and related assets. The Acquisition has an effective date of April 1, 2021. Total consideration paid for the Asset was $1,500,000 in cash and 2,000,000 Class B common shares of ROK (the "Share Consideration").
In addition, the Company announces that it has completed a first closing of the previously announced private placement financing for a total of $1,790,000 (the "Private Placement"), whereby 8,950,000 units ("Units") of the Company were issued at a price of $0.20 per Unit. Each Unit consists of one Class B common share in the capital of the Company (each a "Common Share") and one half of one Common Share purchase warrant (each full warrant, a "Warrant"). Each Warrant will be exercisable for one Common Share at an exercise price of $0.35 per Warrant for a period of 2 years. The Common Shares to be issued because of this Private Placement will be subject to a four-month trading restriction, expiring on August 28, 2021. After issuance of the Share Consideration and the first closing of the Private Placement, the Company will have 70,171,576 total Class B common shares issued and outstanding. A second closing of the private placement is expected to occur in May 2021 to complete the remainder of the placement. Proceeds from the Private Placement were used to satisfy the purchase price for the Acquisition as well as general corporate purposes. Commissions were paid to various brokers and finders in an amount of approximately $56,000 plus the issuance of a total of 280,000 broker warrants, each such broker warrant exercisable into one Common Share at an exercise price of $0.35 per share for a period of two years from the date of closing, expiring on April 27, 2023.
