New Issue: Fairmount Energy says greenshoe will be fully exercised in C$5 million sale of shares

By Devika Patel

Knoxville, Tenn., Nov. 14 - Fairmount Energy Inc. announced the syndicate of underwriters for the company's private placement of stock has decided to exercise its greenshoe in full and now plans to raise the total C$5 million allowed under the agreement. The deal priced on Oct. 31 for C$3 million with a C$2 million over-allotment option.

The company now will sell a total of 3,572,000 flow-through common shares at C$1.40 per share. Of those shares, 2,143,000 were sold on a bought-deal basis.

The underwriting syndicate is being led by Dundee Securities Corp. and includes Acumen Capital Finance Partners Ltd., GMP Securities LP and Blackmont Capital Inc. The underwriters will receive a cash commission.

Proceeds from the deal, which is expected to close Thursday, will be used for exploration.

Based in Calgary, Alta., Fairmount Energy explores for and produces petroleum and natural gas in western Canada.

Issuer:	Fairmount Energy Inc.
Issue:	Flow-through common shares
Amount:	C$5,000,800
Shares:	3,572,000
Greenshoe:	1,429,000 shares, or C$2,000,600
Price:	C$1.40
Warrants:	No
Underwriters:	Dundee Securities Corp. (lead), Acumen Capital Finance Partners Ltd., GMP Securities LP, Blackmont Capital Inc.
Pricing date:	Oct. 31
Settlement date:	Nov. 15
Stock symbol:	TSX Venture: FMT
Stock price:	C$1.25 at close Oct. 30

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