North American Oil & Gas Corp (OTCBB:NAMG) Reveals Financing Details
Back in October North American Oil & Gas Corp (OTCBB:NAMG) announced a $200 thousand equity financing. It turns out it won’t be a one time deal.
An 8-K filed by the company yesterday reveals NAMG had entered a letter agreement pursuant to which a German company will purchase $1 million worth of NAMG common stock in five $200 thousand tranches, with forty-five day intervals. The October purchase will count as the first tranche, although the agreement had not been finalized at the time.
The filing also shows that the second tranche was executed last Friday. The German investor, Oel und Erdgazforshung AG, got a 10% discount on the shares, and warrants to purchase another 100 thousand shares at a 15% premium. The same conditions will apply for future tranches.
Seeing how Oel und Erdgazforshung got their shares on Friday, they could have been among the sellers yesterday as NAMG dropped 6.55% and closed at $0.785 per share on 632 thousand shares. The high for the day was $0.85 and the low was $0.77. The German company could have sold at a profit at any time.
In the meantime, a couple of small-time pumpers were paid to tout NAMG. Both Fast Money Alerts and Premiere Alerts have a prolific history of insignificant, cheap pumps on stocks which have had bigger campaigns prior to that.
Getting financing is often necessary, especially for companies like NAMG which aren’t generating any revenues and it’s not clear if they ever will. However, with the conditions for this particular financing the only party which can be relatively certain it won’t be taking losses is Oel und Erdgazforshung AG.
