By Laura Lutz
Des Moines, July 9 - Longbow Resources Inc. closed the second tranche of its previously announced private placement of debentures, shares and warrants, bringing the total deal size to C$6.5 million.
In total, the company sold C$3.25 million in secured convertible non-transferable 0% debentures; 8.125 million shares at C$0.40 each; and 2,379,465 warrants.
The second tranche consisted of C$1.75 million principal amount of convertible debentures, 8.125 million shares and 2,029,465 warrants.
The first tranche, which settled on May 31, consisted of C$1.5 million principal amount of convertible debentures and 350,000 warrants.
The debentures will mature in two years. They will be convertible into common shares at C$0.42 per share.
The company may force conversion of some of the debentures if its common shares trade at or above C$0.84 for a set period.
The warrants each will be exercisable at C$0.42 for two years.
Kisco LBR LLC was the sole investor in the first tranche and the lead investor in the second tranche.
Following the placement, Kisco owns about 45% of the company's expanded share capital, making it a new "control person" under applicable securities law. As a result, settlement of the second tranche required approval of the TSX Venture Exchange and of shareholders.
Shareholder approval was obtained at a special meeting on Thursday.
The deal priced on May 14 as a C$6 million offering of C$3 million in secured convertible non-transferable 0% debentures; 7.5 million shares at C$0.40 per share; and 2.195 million warrants.
It was upsized to C$6.5 million on May 31.
Proceeds will be used for exploration and development, ongoing acquisition evaluations and 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; shares
|
| Amount: | C$6.5 million
|
| Investor: | Kisco Private Investors, LLC (lead)
|
| Pricing date: | May 14
|
| Settlement dates: | May 31 (for C$1.5 million); July 9 (for C$5 million)
|
| Stock symbol: | TSX Venture: LBR
|
| Stock price: | C$0.375 at close May 14
|
| Stock price: | C$0.43 at close May 30
|
| Stock price: | C$0.46 at close July 9
|
|
|
| Debentures
|
| Amount: | C$3.25 million
|
| Maturity: | Two years
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion price: | C$0.42
|
| Warrants: | 2,379,465
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.42
|
|
|
| Shares
|
| Shares: | 8.125 million
|
| Price: | C$0.40
|
| Warrants: | See above
|
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