North American Oil & Gas Corp (OTCBB:NAMG) Rises $0.2 Million Through Stake Sale

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Dallas, Texas 10/29/2013 (Financialstrend) – The $76.1 million market capped North American Oil & Gas Corp (OTCBB:NAMG) has seen its stock value get elevated by an impressive 24% during trading over the last 5 days. As of close of business on October 28, the shares of the stock were trading at $1.26 indicating a 4.13% increase from its previous day close. This huge jump was caused by the filing of mandatory notification with Security and Exchange Board by the oil and gas exploration company indicating new capital injection into its operations in the form of stake sale to foreign firm.

As per North American Oil and Gas update to SEC, the stake sale agreement was signed on October 16. The investor has been identified as “Oel und Erdgazforshung AG”. The first part of the sale agreement involves NAMG issuing 0.249 million shares of its common stock to the investor in exchange of $0.2 million cash. The second part of the same agreement is related to a warrant issues which are slated to expire on October 10. As per the terms, ‘Oel und Erdgazforshung AG” retains an option to buy 0.96 million of common stock at a predetermined price of $1.04 per share. The investor can exercise this warrant any time between now and October 10, 2016 as per the terms agreed by the two companies. At current pricing the warrant rates being offered to the investor translate into a 17% discount.

The oil and gas exploration firm plans to use the proceeds into sustaining its operations and continuing its exploration activities. Since October 1, the stock has seen its market value appreciate by an impressive 27% of which close to 24% was accrued in the last week of trading. At current valuations the stock is trading at prices which is 24% below its prior 52 week high pricing.

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