By Sheri Kasprzak
New York, Dec. 29 - Ridgeway Petroleum Corp. said it plans to raise $2 million from a private placement of a senior secured note.
The 1.5% note matures on Dec. 23, 2006.
The investors will receive warrants for 1 million shares, exercisable at C$0.50 each through maturity.
The financing is being conducted so that the company can proceed with its previously announced $20 million private placement of convertible preferred stock, which will be conducted in the first quarter of 2006.
Proceeds will be used for front-end engineering and design studies, repayment of an outstanding loan and lease rental payments on the company's St. Johns Helium/CO2 project in Arizona and New Mexico. The rest will be used for working capital.
Based in Calgary, Alta., Ridgeway is a development-stage oil and natural gas exploration company.
| Issuer: | Ridgeway Petroleum Corp.
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| Issue: | Senior secured note
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| Amount: | $2 million
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| Maturity: | Dec. 23, 2006
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| Coupon: | 1.5%
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| Price: | Par
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| Yield: | 1.5%
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| Warrants: | For 1 million shares
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| Warrant expiration: | Dec. 23, 2006
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| Warrant strike price: | C$0.50
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| Announcement date: | Dec. 29
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| Stock price: | $0.4909 at close Dec. 29
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