Oxford, MS 3/31/2011 (Penny PayDay) -- 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, in a press release, that it has completed a private placement of 3,697,005 units for gross proceeds of $21,257,778.75 in a private placement. As I write, shares of American Standard Energy are down slightly at $7.51 per share on light volume of 10,267 shares compared to its average daily volume of 20,857 shares. The company has a market cap of $81 million and a 52-week range between $2.50 and $8.75 per share.Each unit consisted of one share of common stock and 5 year warrants to purchase one half share of common stock. The units were sold to certain institutional and accredited investors. The transaction closed on March 31, 2011. The Company has entered into a registration rights agreement with the investors pursuant to which the Company is obligated to 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 common stock underlying the warrants sold in this private placement.
After payment of commissions and expenses, the Company received net proceeds of $19,720,403.91. The Company plans to use the proceeds of this financing to continue to pursue acquisition opportunities, expand drilling and production.
Scott Feldhacker, CEO of American Standard Energy Corp., commented, "We believe our ability to successfully conduct this second offering is a testament to the abilities of our management team, the encouragement of our investors to continue our exciting growth and Northland Capital Markets. We will continue to execute our business plan, which includes expanding our holdings in the Bakken region of the Williston Basin."
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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