Trillion Energy International Inc said it plans to complete a non-brokered private placement of up to 60,606,060 units at a price of $0.165 each for aggregate gross proceeds of up to a maximum of $10 million.
In a statement, Art Halleran, Trillion Energy CEO, commented: "This non-brokered private placement allows Trillion to purchase the long lead well drilling consumable items and to pay the secure deposit for the Drilling Rig to allow the July 2022 start drilling date."
The units in the offering will be comprised of one common share and one half of one share purchase warrant of Trillion. Each whole warrant entitles the holder to purchase one common share for $0.45 expiring two years from the date of the closing of the offering.
READ: Trillion Energy says Russian-Ukraine conflict not expected to adversely impact its SASB natural gas project in Black Sea region
The warrants will include an acceleration provision whereby if the company's common shares trade at a price greater than $1.00 for a period of 20 trading days, Trillion may accelerate the expiry of the warrants.
Echelon Capital Markets is acting as financial advisor to Trillion with respect to the offering. There is no minimum under the offering.
Trillion said it may pay a cash finder's fee to qualified non-related parties of up to 8% of the gross proceeds of the offering (up to $800,000) and broker warrants equal to up to 8% of the number of units sold in the offering - up to 4,848,485 broker warrants).
Each broker warrant will entitle the holder to acquire one common share at a price of $0.45 per broker warrant for a period of two years from the date of issuance. In addition, Echelon will be paid an advisory fee.
Completion of the offering is subject to regulatory approval including, but not limited to, the approval of the CSE. The securities issued will be subject to a four-month hold period from the date of the closing of the offering.
An initial closing is expected to occur on or about March 15, 2022, followed by additional closings until the earlier of the offering being fully subscribed and March 24, 2022. The initial closing is expected to be entirely President's list subscribers with more than $6 million subscribed for.
Trillion Energy is an oil and gas producing company with multiple assets throughout Turkey and Bulgaria. The company is 49% owner of the SASB natural gas field, one of the Black Sea's first and largest-scale natural gas development projects; a 19.6% (except three wells with 9.8%) interest in the Cendere oil field; and in Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property.
Contact the author at jon.hopkins@proactiveinvestors.com