US Oil Sands Inc. (TSXV:USO) announced that it has signed a letter of intent to issue 533,333,333 common shares at a price of CAD 0.15 per share for gross proceeds of CAD 80,000,000 on September 16, 2013. The transaction will include participation from new strategic investors Anchorage Capital Group, L.L.C., Blue Pacific Investments Group Ltd., Spitfire Ventures, LLC. The issue price represents a 49% premium to the 20 day volume weighted average trading price of common shares. The transaction is expected to close on or about October 15, 2013 and is subject to the parties entering into definitive agreements and customary closing conditions, including due diligence as well as shareholder and TSX Venture Exchange approval.

Upon closing of the transaction, the strategic investors will collectively hold approximately 63% stake in the company. Kevin Ulrich will join the company's board of directors. Canaccord Genuity Corp., EAS Advisors, LLC through Merriman Capital, Inc., and Fiore Management & Advisory Corp. will act as financial advisors to the transaction.

On October 18, 2013, the company amended the terms of the transaction. The company announced that it will issue 540,036,331 shares at CAD 0.15 per share for aggregate gross proceeds of 81,005,449.65. The transaction included participation of Anchorage Capital Group, L.L.C, Oils Associates, S.A., and Spitfire Ventures, LLC. A total of 532,968,331 common shares were issued in an initial closing and it is anticipated that an additional 7,068,000 common shares will be issued in a second closing. After the transaction, US Oil Sands will have 852,892,395 common shares outstanding on a non-diluted basis. Oil Associates acquired 166,666,667 common shares and Anchorage Capital Group, L.L.C acquired 223,333,333 common shares, in the transaction which represents approximately 20% and 26% stake respectively. The financing is subject to a statutory hold period of four months from the date closing. The financing was approved by a majority of the company's shareholders. As part of the transaction, the company appointed Serafino Iacono and Ronald Pantin as nominees of Oil Associates, Stephen Lehner as a nominee of ACMO, and Alfred Holcomb as a nominee of Spitfire in its board of directors. Kevin Ulrich of ACMO and Rod Lewis of Spitfire will act as observers to the board of directors. The transaction was approved by the regulatory board and by shareholders.

On October 28, 2013, US Oil Sands Inc. closed the transaction. The company issued the remaining shares in second and final tranche. The transaction involved participation from 35 investors including accredited investors. The company paid CAD 1,465,081.74 as finder's fee to Canaccord Genuity Corp. and CAD 440,000 to Merriman Capital Inc. The company received $12,485,018.97 (CAD 13,056,800) from the investors of the United States of America pursuant to exemption provided under Regulation D. The transaction will include participation from 10 investors. The conversion was taken from www.oanda.com on October 28, 2013.