By Laura Lutz
Des Moines, Jan. 4 - Running Fox Resource Corp. arranged a private placement of flow-through and non flow-through units for C$2.4 million.
The company sold 280,000 flow-though units of one flow-through share and one half-share non flow-through warrant. Each whole warrant with the flow-through units is exercisable at C$1.25 for one year.
The remaining C$2.12 million of the placement consists of units of one non flow-through share and one non flow-through warrant at C$0.75 per unit. Each whole warrant with the non flow-through units is exercisable for two years, at C$1.10 in the first year and at C$1.50 in the second year.
All of the warrants have a repricing mechanism because the company plans to split off a separate new public company to enhance shareholder value. Under that mechanism, 40 days after the energy division spinoff, the company will apply to the Toronto Stock Exchange to adjust the exercise price of the warrants to a 30% premium over the preceding 30-day average trading price of the company's shares.
No repricing will occur if the exercise price is less than a 30% premium to that trading price.
The placement will be non-brokered.
Running Fox is a Vancouver, B.C.-based energy company.
| Issuer: | Running Fox Resource Corp.
|
| Issue: | Units of one flow-through share and one half-share non flow-through warrant and units of one non flow-through share and one non flow-through warrant
|
| Amount: | C$2.4 million
|
| Agent: | Non-brokered
|
| Pricing date: | Jan. 4
|
| Stock symbol: | TSX Venture: RUN
|
| Stock price: | C$0.81 at close Jan. 4
|
|
|
| Flow-through units
|
| Units: | C$280,000
|
| Price: | C$1.00
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$1.25
|
|
|
| Non flow-through units
|
| Amount: | C$2.12 million
|
| Price: | C$0.75
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.10 in the first year; C$1.50 in the second year
|
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