By Devika Patel
Knoxville, Tenn., Dec. 4 - Longbow Resources Inc. raised C$4.3 million from the second and final tranche of its C$6 million private placement with Kisco LBR LLC. The company took in C$1.7 million in the first tranche on Oct. 29.
The placement originally priced on July 30 as a C$5 million offering of C$2.25 million of debentures, 5,626,000 shares at C$0.40 each and 1,647,322 warrants. The deal was changed to its current size and pricing on Oct. 15.
In the first tranche, Longbow issued C$1.7 million principal amount of secured non-transferable convertible debentures and 750,000 warrants.
The second tranche consists of C$1.3 million of debentures, 7,894,737 common shares at C$0.38 each and 1,559,211 warrants.
The debentures mature on Oct. 26, 2009 and bear no interest. They will be convertible at C$0.40 per share.
If Longbow's common shares trade at or above C$0.80 for a certain trading period, the company may force conversion of a certain percentage of the debentures in each 120-day trading period in which the condition is met.
Each warrant will be exercisable at C$0.40 until Oct. 26, 2009.
Proceeds will be used for drilling on the company's new oil properties, for exploration and development on its other properties and for general corporate purposes.
Longbow is an oil and natural gas company based in Calgary, Alta.
| Issuer: | Longbow Resources Inc.
|
| Issue: | Secured, non-transferable convertible debentures and stock
|
| Amount: | C$6 million
|
| Warrants: | 2,309,211
|
| Warrant expiration: | Oct. 26, 2009
|
| Warrant strike price: | C$0.40
|
| Investor: | Kisco LBR LLC
|
| Pricing date: | July 30
|
| Upsized: | Oct. 15
|
| Settlement date: | Oct. 29 (for C$1.7 million); Dec. 4 (for C$4.3 million)
|
| Stock symbol: | TSX Venture: LBR
|
| Stock price: | C$0.36 at close July 30
|
|
|
| Debentures
|
| Amount: | C$3 million
|
| Maturity: | Oct. 26, 2009
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion price: | C$0.40
|
|
|
| Stock
|
| Amount: | C$3 million
|
| Shares: | 7,894,737
|
| Price: | C$0.38
|
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