Ivory Energy to sell C$25 million convertibles

New York, June 22 - Ivory Energy Inc. said it plans to offer up to C$25 million of convertible debenture units.

Wellington West Capital Markets Inc. will be agent for the best efforts public sale.

Each unit will include C$1,000 principal amount of convertible secured subordinated debentures and 200 common share purchase warrants.

The debentures will mature after five years and one day and pay a coupon of 9.5%. They will be callable after three years.

The conversion price will be fixed at pricing.

The warrants will be exercisable for one share for five years. The exercise price will be set at pricing.

Immediately on being issued, the units will separate into their constituent debentures and warrants. Settlement is expected on July 16.

Ivory, a Calgary, Alta., oil and gas exploration and production company, will use proceeds to fund its previously announced acquisitions of 101091129 Saskatchewan Ltd. and Zenith Petroleum Corp.

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