By Sheri Kasprzak
New York, Nov. 15 - Ivanhoe Energy Inc. said it has concluded a private placement for $18.25 million.
The company sold 11,196,330 special warrants at $1.63 each to four investors.
The special warrants are exchangeable on a one-for-one basis for units of one share and one warrant. The warrants are exercisable at $2.50 each for two years.
The special warrants will be converted once Ivanhoe completes its acquisition of a joint venture interest in a strategic asset.
As part of the financing, the holder of $8 million in outstanding convertible loans subscribed for special warrants enough to retire half of the principal balance of the loans. The investor also extended the maturity on the 8% loan until Nov. 15, 2007. The investor also received warrants for 2 million shares, exercisable at $2.00 each through Nov. 15, 2007.
Of the proceeds, $6.75 million was used to acquire one-half of a joint venture company which owns the RTP Commercial Demonstration Facility.
Ivanhoe, based in Vancouver, B.C., is an oil and natural gas exploration company.
| Issuer: | Ivanhoe Energy Inc.
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| Issue: | Special warrants exchangeable for units of one share and one warrant
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| Amount: | $18.25 million
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| Special warrants: | 11,196,330
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| Price: | $1.63
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| Warrants: | One warrant per unit upon exchange
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| Warrant expiration: | Two years
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| Warrant strike price: | $2.50
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| Settlement date: | Nov. 15
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| Stock price: | $1.37 at close Nov. 15
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