Toreador Resources Increases $45M in Private Placement
How powerful is finance investing? Well, you can take Toreador as a good case in point.
Toreador Resources Corp., an independent oil and gas company, announced the closing of the $45-million private placement of equity on March 23. In said transaction, Toreador issued 2,710,843 shares of common stock to 4 institutional investors. At closing, the result was $45 million of gross proceeds in favor of the company. Behind the progressive finance investing transaction is Merrill Lynch & Co., which acted as the exclusive placement agent of Toreador.
Additionally, Toreador granted the investors options to acquire an extra amount of $8.1 million aggregate common stock within the next 30-day period. According to the company, the net proceeds of the placement will go to its exploration and development activities for this year.
In the private placement, the common stock offered and to be issued in accordance with the exercise of the 30-day purchase options, has not been registered under the Securities Act of 1933 or any state securities laws. Thus, it could not be offered in the US without prior registration. But the company has agreed to file a registration statement within 60 days of closing. It will also strive to have the registration statement within 150 days of closing for the resale of the shares of common stock issued and yet to be issued.
