Yesterday, Laredo Oil, Inc. announced that they entered into an agreement on July 26, 2010 with an institutional investor. This agreement is for the private placement of 1,000,000 shares of their common stock and warrants to purchase 750,000 shares of their common stock for an aggregate purchase price of $500,000, or $0.50 per share. Laredo Oil closed the transaction on July 27, 2010. The Company plans to use the net proceeds of the transaction for general corporate purposes. Sutter Securities Incorporated is acting as the exclusive placement agent in the transaction.
The warrants are immediately exercisable following issuance. They have a term of exercise of five years and an exercise price of $0.50 per share. The shares of common stock offered in the private placement and the shares issuable upon exercise of the warrants have piggy-back registration rights. This is if Laredo Oil, Inc. elects to file a registration statement in the future, subject to customary underwriter cut-backs.
Mark See, Chairman and CEO of Laredo Oil, Inc., said, “This financing is the next milestone in our overall strategy and is indicative of institutional interest in our Underground Gravity Drainage™ business model.”
The Underground Gravity Drainage™ (UGD™) business method consists of using customary tunneling practices to go underneath mature oil fields that meet the Company’s specific criteria. From an underground chamber below the reservoir, inexpensive holes undergo drilling into the oil formation. From these the production of stranded reserves takes place.
Laredo Oil, Inc. is an exploration and production company specializing in Enhanced Oil Recovery techniques targeting mature and declining oil fields. The Company plans to acquire targeted oil fields and use their unique UGD™ model to recover stranded oil reserves profitably. Laredo Oil, Inc. has their headquarters in Scottsdale, Arizona.
For more information visit: www.laredo-oil.com