Mr. Thomas Yingling reports
PENNANT ENERGY ANNOUNCES CLOSING OF PRIVATE PLACEMENT FINANCINGS OF $1.1 MILLION
Pennant Energy Inc. has closed the brokered private placementthrough Canaccord Genuity Corp., and a non-brokered private placement,as originally announced on July 4,2011. The company obtained conditional approval from the TSX VentureExchange for the offering onJuly 15, 2011.
The brokered portion of the offering consisted of the sale of 5,478,294flow-through shares of thecompany at a price of 17 cents per flow-through share and 972,000 unitsof the company at a price of 17 cents per unit for total gross proceeds$1,096,549.98.
Each unit consists of one common share of the company and onecommon-share purchase warrant. Each warrant is exercisable into onecommon share of the company for a period of 24 monthsfrom closing at an exercise price of 22 cents.
The company paid the agent a cash fee equal to 7 per cent of the gross proceeds raised from the brokered privateplacement, and issued to the agent warrants equal to 7 per cent of the total numberof units and flow-through shares sold. Each agent's warrant is exercisable into one common share of the companyfor a period of 24 months from closing at an exercise price of 17 cents. In addition, the company issued147,059 units as a corporate finance fee to the agent.