COMMON STOCK

9 Months Ended

Jan. 31, 2012

11.	COMMON STOCK

On January 17, 2011 the Company entered into an equity distribution agreement. Under the terms of the agreement the Company could offer and sell shares of its common stock by way of “at-the-market” (ATM) distributions, up to a maximum of $20 million until January 18, 2012. Shares were distributed at market prices prevailing at the time of each sale; prices could therefore vary between purchasers and during the period of distribution. A total of 5,537,137 shares were distributed under this arrangement for gross proceeds of $3.1 million. No share issues occurred during the nine month period ending January 31, 2012. Funds raised from the ATM program are used to finance general corporate purposes. This arrangement terminated on January 17, 2012.

On October 17, 2011, the Company entered into a securities purchase agreement (“SPA”) with Socius CG II, Ltd. (“Socius”), a subsidiary of Socius Capital Group. The Company had the right, over a term of two years, to require Socius, subject to the terms and conditions of the SPA, to purchase up to $12 million of Series C redeemable preferred shares (the “Preferred Shares”). The Company did not sell any Preferred Shares under the terms of the SPA. The SPA automatically terminated on November 29, 2011 upon filing of the CCAA protection.

Oilsands Quest Inc 10-Q