Jericho Oil (JCO.V) is perhaps one of the best-backed oil companies on the TSX Venture Exchange as not only was it able to count on the Breen family to ‘get started’ a few years ago, the core shareholders continue to support the company. A total of 7.9 million warrants with a strike price of C$0.60 have now been exercised for total proceeds of C$4.75M (of which ‘insiders’ contributed approximately C$2.5M).
On top of the C$4.75M inflow, Jericho also raised fresh cash at C$0.60 per unit (which is the strike price of the warrants which just got exercised) with each unit consisting of one common share and half a warrant with a strike price of C$0.90 valid for two years.
As of at the end of September, the date of Jericho’s most recent financial statements, the company had C$13.4M in cash. The C$7M in additional cash inflow is important to top up the bank account before a 2018 drill program, and to fund the exercise of the option to acquire a larger stake in the STACK play.