CALGARY, Dec. 5 /CNW/ - Oilsands Quest Inc. (Amex: BQI) (the "Company")
announced the completion today of its previously-announced marketed public
offering (the "Offering") of 11,000,000 units ("Units"), priced at US$5.00 per
Unit, and 2,600,000 common shares on a flow-through basis ("Flow-through
Shares"), priced at Cdn$6.17 per Flow-through Share. The Flow-through Shares
were not offered in the United States.
Each Unit is comprised of one common share (a "Share") and one-half of a
common share purchase warrant of the Company (a "Warrant") with each whole
Warrant entitling the holder to purchase one Share of the Company at US$6.75
for a period of 24 months following closing of the Offering.
The Warrants associated with the Units are listed for trading on the
American Stock Exchange (Amex) under the symbol BQI.WS.
The Offering was made through a syndicate of underwriters (the
"Underwriters") bookrun by TD Securities Inc. and including Genuity Capital
Markets, CIBC World Markets Inc., Desjardins Securities Inc., Blackmont
Capital Inc., Canaccord Capital Corporation and Lehman Brothers Canada Inc. in
Canada and their respective U.S. registered broker dealer affiliates. An
over-allotment option was granted by the Company to the Underwriters for the
purchase of up to 1,650,000 Shares and 825,000 Warrants, exercisable at any
time up to 30 days from the closing of the Offering. The Offering resulted in
net proceeds to the Company of approximately US$67.7 million.
The Company intends to use the proceeds of the offering of Units for
reservoir testing and other costs associated with the Axe Lake Discovery and
for general corporate purposes. Specific allocations of the proceeds for such
purposes have not been made at this time.
The Company intends to use the proceeds from the offering of the
Flow-through Shares to incur Canadian Exploration Expenses through exploration
activities relating to its permit lands.
About Oilsands Quest Inc.
Oilsands Quest Inc. is aggressively exploring Canada's largest contiguous
oil sands land holding by applying its technical expertise to develop multiple
potential global-scale discoveries. The company (www.oilsandsquest.com) is the
originator of Saskatchewan's emerging oil sands industry.
Except for statements of historical fact relating to the company, this
news release contains certain "forward-looking information" within the meaning
of applicable securities law. Forward-looking statements such as references to
Oilsands Quest's exploration, technical and development programs and future
discoveries are based on the opinions and estimates of management at the date
the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those anticipated in the forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to,
exploration and technical risks inherent in the oil sands industry, regulatory
and economic risks, and risks associated with the company's ability to
implement its business plan. There are uncertainties inherent in
forward-looking information, including factors beyond Oilsands Quest's
control, and no assurance can be given that the programs will be completed on
time, on budget or at all. Oilsands Quest undertakes no obligation to update
forward-looking information if circumstances or management's estimates or
opinions should change, except as required by law. The reader is cautioned not
to place undue reliance on forward-looking statements. The risks and
uncertainties set forth above are not exhaustive. Readers should refer to
Oilsands Quest's current annual report on Form 10-KSB and other document
filings, which are available at www.sedar.com and at www.sec.gov for a
detailed discussion of these risks and uncertainties and details regarding the
location and extent of Oilsands Quest's land holdings.
For further information:
For further information: General inquiries and retail investors, contact
Hedlin Lauder Investor Relations Ltd., Toll Free 1-800-299-7823, Office (403)
232-6251, Email firstname.lastname@example.org; Institutional investors, contact
BarnesMcInerney Inc., Toll Free 1-866-794-7288, Office (416) 371-0510, Email