New Issue: Fairborne Energy pockets C$28.41 million from private placement of stock

By Devika Patel

Knoxville, Tenn., May 28 - Fairborne Energy Ltd. said it completed a C$28.41 million private placement of shares. The deal priced for C$24.7 million on May 7 with a C$3.7 million greenshoe.

The company sold 2.3 million common shares at C$12.35 each. Of those shares, 300,000 were part of the fully exercised greenshoe.

The deal was conducted by a syndicate of underwriters led by Cormark Securities Inc. and RBC Capital Markets and including Canaccord Capital Corp., National Bank Financial Inc., FirstEnergy Capital Corp., CIBC World Markets Inc. and Dundee Securities Corp.

Proceeds will be used to fund Fairborne's exploration and development program and for working capital purposes.

Fairborne is a Calgary, Alta.-based oil and natural gas exploration company.

Issuer:	Fairborne Energy Ltd.
Issue:	Common shares
Amount:	C$28,405,000 (including C$3,705,000 greenshoe)
Shares:	2.3 million (including 300,000 greenshoe)
Price:	C$12.35
Warrants:	No
Underwriters:	Cormark Securities Inc. (co-lead), RBC Capital Markets (co-lead), Canaccord Capital Corp., National Bank Financial Inc., FirstEnergy Capital Corp., CIBC World Markets Inc., Dundee Securities Corp.
Pricing date:	May 7
Settlement date:	May 28
Stock symbol:	Toronto: FEL
Stock price:	C$10.59 at close May 6

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