PP prices at $0.95 - very nice.
I'd have preferred no warrants, but can't have everything...
BROWNSTONE ENERGY ANNOUNCES TERMS OF FINANCING
BrownstoneEnergy Inc. has finalized the terms of its previously announcedprivate placement and intends to enter into an agreement with JenningsCapital Inc. and Dundee Securities Ltd., acting as co-lead underwriterson behalf of a syndicate of underwriters which includes ClarusSecurities Inc., Fraser Mackenzie Ltd., PI Financial Corp. and All GroupFinancial Services Inc. to issue 26,315,790 units of the company at aprice of 95 cents per unit for gross proceeds of $25-million. Each Unitis comprised of one common share of the Company (the "Common Shares")and one-half of one common share purchase warrant (the "Warrants"). Eachwhole Warrant will entitle the holder to purchase one Common Share at aprice of $1.25 for a period of 18 months from the Closing Date of theOffering (the "Warrant Term"). If, following the expiry of thefour-month hold period, the closing price of Brownstone's common sharesexceeds $1.75 for 20 consecutive business days, then the Warrant Termshall be automatically reduced and the Warrants will expire on the datethat is 30 days following the issuance of a press release announcing thereduced Warrant Term.
The Company has also grantedthe Underwriters an option (the "Over-Allotment Option") to increasethe size of the Offering by up to an additional 3,947,368 Units,exercisable in whole or in part at any time up to the Closing Date. Ifthe Over-Allotment Option is exercised in full, the aggregate grossproceeds raised will be $28,750,000.
The Companyintends to use the net proceeds of the Offering to fund its explorationand development programs in Colombia and off-shore Israel, for workingcapital and general corporate purposes.
Closing ofthe Offering is anticipated to occur on or about March 9, 2011 (the"Closing Date") and is subject to certain customary conditions andregulatory approvals including approval of the TSX Venture Exchange. TheCommon Shares will be subject to a statutory hold or restricted periodof four months following the Closing Date. In connection with theOffering, the Company has agreed to pay to the Underwriters a cashcommission equal to 6.0% of the gross proceeds raised and Warrants equalto 6.0% of the number of Units issued pursuant to the Offering(including the exercise of the Over-Allotment Option).
PowerOne Capital Markets Limited is acting as an advisor to Brownstone.
? 2011 Canjex Publishing Lt