Maple Marathon buys 155 million units, to own 43.9% of company’s stock
By Devika Patel
Knoxville, Tenn., Aug. 4 – Long Run Exploration Ltd. said it negotiated a C$201.5 million private placement of units with Maple Marathon Investments Ltd.
The company will sell 155 million units of one common share and two fifth-share warrants at C$1.30 per unit.
Half of the whole warrants are each exercisable at C$1.40 for 18 months, and the other half are each exercisable at C$1.80 for two years. The strike prices are 145.61% and 215.79% premiums to the Aug. 3 closing share price of C$0.57.
After the private placement, Maple Marathon will hold about 43.9% of the company’s outstanding stock.
Proceeds will be used for debt reduction.
Calgary, Alta.-based Long Run is an oil and natural gas company focused on light oil and NGL development and exploration in western Canada.
| Issuer: | Long Run Exploration Ltd.
|
| Issue: | Units of one common share and two fifth-share warrants
|
| Amount: | C$201.5 million
|
| Units: | 155 million
|
| Price: | C$1.30
|
| Warrants: | Two fifth-share warrants per unit
|
| Warrant expiration: | 18 months, two years
|
| Warrant strike prices: | C$1.40, C$1.80
|
| Investor: | Maple Marathon Investments Ltd.
|
| Pricing date: | Aug. 4
|
| Stock symbol: | Toronto: LRE
|
| Stock price: | C$0.57 at close Aug. 3
|
| Market capitalization: | C$133.51 million
|
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