By InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s oil and gas exploration and production firm, Oando Energy Resources Inc (OER) on Monday said it has received the approval of the Toronto Stock Exchange (TSX) to list $620.4 million warrants.

The company said it will list 44,673,441 previously issued warrants to acquire 344,673,441 common shares of OER at a price of US$1.80 per common share until July 30, 2016, subject to acceleration and usual adjustments.

According to OER, the listing of the warrants is expected to enhance market liquidity of the company’s currently listed common shares and reduce the holdings of the company’s controlling shareholder, Oando Plc, to the extent that warrants are exercised by holders other than Oando Plc.

‘’The warrants are expected to commence trading on the TSX on or about January 8, 2015 under the symbol (OER.WT),’’ OER said.

OER affirmed that in order to meet the TSX’s public distribution requirements for listing of the warrants, a wholly-owned subsidiary of Oando Plc transferred 100 warrants to each of 103 employees of Oando Plc for no consideration and on the basis that each employee has voluntarily accepted such warrants.

The oil and gas exploration and production firm disclosed the warrants were transferred pursuant to section 2.24 of National Instrument 45-106 – Prospectus and Registration Exemptions.

Following the transfer of warrants described above, the wholly-owned subsidiary of Oando Plc now holds 325,382,569 warrants.

The company said in pursuant to an undertaking to be given to the TSX in connection with listing the warrants, Oando Plc and its subsidiaries are restricted from exercising any warrants to the extent that such conversion would result in Oando Plc’s direct and indirect ownership of common shares of OER exceeding 94.6 percent.

OER further affirmed the terms of the warrants are set out in a warrant indenture dated December 31, 2014, which will be filed under OER’s profile at www.sedar.com.