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Pennant Energy arranges $500,000 debenture financing
2013-09-26 13:39 ET - News Release
Mr. Garth Braun reports
PENNANT ANNOUNCES PRIVATE PLACEMENT
Subject to regulatory approval, Pennant Energy Inc. will be conducting a non-brokered private placement of unsecured convertible debentures in the total principal amount of up to $500,000. Each convertible debenture will be convertible into common shares of the company. The company will issue 20,000 share purchase warrants for each $1,000 of principal amount of each convertible debenture. Each warrant will entitle the holder to purchase one share at a price of five cents per share for a period of two years. The convertible debentures mature 18 months from the date of the closing of the offering and bear interest at the rate of 18 per cent per year payable on the maturity date.
At any time at the option of the holder, the principal amount of each convertible debenture will be convertible into shares at a price of five cents per share during the first 12 months after issuance and at a price of 10 cents per share thereafter until the maturity date and any accrued but unpaid interest thereon will be convertible into shares at the price per share that is equal to the market price (as defined in the policies of the TSX Venture Exchange) at the time of conversion.
Each convertible debenture will be prepayable at the election of the company in an amount equal to the principal amount, any accrued but unpaid interest and a penalty equal to three months interest. If the company disposes of its Bigstone project, then the company will be required to repay all of the convertible debentures in an amount equal to the prepayment amount within 10 days of the completion of such sale.
The company will pay a cash finder's fee or broker commission of 8 per cent payable in connection with the offering.
The proceeds of the offering will be used by the company to pay for its share of the costs of the first Success formation well to be drilled at its new oil exploration project located in the Mantario area of west-central Saskatchewan in the fourth quarter of 2013, and for general working capital.