By Sheri Kasprzak
New York, April 6 - Ivanhoe Energy Inc. said it has negotiated a $25,422,000 private placement.
The non-brokered offering includes up to 11.4 million special warrants at $2.23 each.
The special warrants are exchangeable for units of one share and one warrant once the company files a prospectus covering the underlying shares.
The warrants are exercisable at $2.63 each for five years.
One institutional investor has agreed to buy $12.7 million of the offering and another will buy 3.5 million special warrants. The company's deputy chairman, Robert Friedland, will buy 2.2 million special warrants.
Of the proceeds, $4 million will be used to retire long-term debt. The rest will be used for exploration expenses.
Ivanhoe, based in Vancouver, B.C., is an oil and natural gas exploration and development company with operations in the United States and China.
| Issuer: | Ivanhoe Energy Inc.
|
| Issue: | Special warrants exchangeable for units of one share and one warrant
|
| Amount: | $25,422,000
|
| Special warrants: | 11.4 million
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| Price: | $2.23
|
| Warrants: | One warrant per unit upon exchange
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.63
|
| Placement agent: | Non-brokered
|
| Pricing date: | April 6
|
| Stock symbol: | Nasdaq: IVAN
|
| Stock price: | $2.66 at close April 6
|
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