American Standard Energy Corp. (OTC:ASEN), a domestic oil and gas exploration and production company with operations focused in North Dakota and Texas, announced today that it has completed a private placement of 4,401,930 units at $3.50 per unit for gross proceeds of $15,406,755. Each unit consisted of one share of common stock and 2 series of 5 year warrants to purchase one quarter share of common stock each (exercise prices of $5.00 and $6.50, respectively). As I write, shares of American Standard are down slightly at $4.95 per share on light volume of just over 6,000 shares.The shares were sold to certain institutional and accredited investors. The transaction was closed on February 1, 2011. The Company has entered into a registration rights agreement with the investors pursuant to which the Company shall file a registration statement with the Securities & Exchange Commission registering all of the common stock sold in the offering as well as the shares of stock common stock warrants sold in this private placement.
After payment of commissions and expenses, the Company received net proceeds of approximately $14.2 million. The Company plans to use the proceeds of this financing to continue to pursue acquisition opportunities, expand drilling and for other working capital needs.
Scott Feldhacker, CEO of American Standard Energy Corp. commented, "We are pleased to complete this phase of funding for the company. The proceeds will be used to continue our growth strategy which includes acquisitions of producing assets and to further our expansion and development in the Bakken region. Our ability to utilize these funds to purchase proven producing assets strengthens immediate cash flows, allowing the company to realize dramatic revenue increases and maintain its growth while minimizing risk and dilution to our shareholders."
Northland Capital Markets, the capital markets and investment banking services group of Northland Securities, Inc, acted as sole placement agent for the offering.
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