Strategic Oil & Gas Ltd. - 2016-02-29

Closed an upsized private placement of 94,851 secured convertible notes priced at CA$1,000 each. Gross proceeds will repay the credit facilities and the bridge loan from Strategic’s major shareholder, and they will support the winter capital program. There is about CA$25 million of cash that will support ongoing working capital and general corporate purposes. The notes have a five-year term and can be converted into common shares priced at 9 Canadian cents each. The private placement was a related-party transaction. RBC Capital Markets was the agent, and is currently the company’s financial adviser. Cormark Securities Inc. and Dundee Capital Markets Ltd. were strategic advisers.