Brokered deal to raise funds for exploration of the Chia Surkh Block
By Devika Patel
Knoxville, Tenn., May 31 - Longford Energy Inc. said it will conduct a C$7.5 million private placement of units via a syndicate of underwriters led by Canaccord Genuity Corp. and including GMP Securities LP and Fraser Mackenzie Ltd.
The company will sell 37.5 million units at C$0.20 apiece. Each unit consists of one common share and one half-share warrant, with each whole warrant exercisable at C$0.30 for two years. The strike price reflects a 17.65% premium to the May 30 closing share price of C$0.255.
Settlement is expected on June 15.
Proceeds will be used for exploration of the Chia Surkh Block in the Kurdistan Region of Iraq and general corporate purposes.
Longford is a Toronto-based oil and gas exploration company.
| Issuer: | Longford Energy Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$7.5 million
|
| Units: | 37.5 million
|
| Price: | C$0.20
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Agent: | Canaccord Genuity Corp. (lead), GMP Securities LP and Fraser Mackenzie Ltd.
|
| Pricing date: | May 31
|
| Settlement date: | June 15
|
| Stock symbol: | TSX Venture: LFD
|
| Stock price: | C$0.255 at close May 30
|
| Market capitalization: | C$35.33 million
|
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