Oilsands Quest Inc. (AMEX: BQI) is seeing a positive reaction to news that the company entered into an agreement with Sprott Asset Management Co. for a private placement of 11,904,761 treasury shares of common stock at $4.20 per share.
Gross proceeds for the placement total $50 million. A separate placement to other accredited investors totals $4.5 million. The total shares issued will reach 12,976,761 for total proceeds of $54.5 million. Proceeds will be used for general corporate and operation purposes.
Shares had been halted pending news, but have now been released. Oilsands Quest shares are up almost 4% in mid-day trading at $4.25. The market cap currently sits at about $906 million.
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May 12, 2008