Each flow-through unit will consist of one flow-through common share plus one-half of a flow-through warrant. Each whole flow-through warrant will entitle the holder thereof to purchase one additional flow-through common share for a period of six (6) months from the date of closing of the private placement at $0.25 per flow-through common share.
Each non-flow-through units will consist of one-non-flow-through common share and one-half a non-flow-through warrant. Each whole non-flow-through warrant will entitle the holder thereof to purchase one additional non-flow-through common share at a price of $0.22 per common share exercisable within six (6) months from date of the closing and at a price of $0.26 per common share exercisable after six (6) months from the date of closing and within twelve (12) months from the closing date.
LongBow Energy Corp. will pay to the syndicate a cash fee of 7.5% of the aggregate gross proceeds on closing. The agents will also be entitled to broker warrants equal to 7% of the securities sold pursuant to the private placement. Each broker warrant will entitle the holder thereof to acquire one common share at $0.18 for a period of twelve (12) months from the date of closing.
The proceeds from the financing, including any monies received from the exercise of warrants associated with the financing, will be used for exploration and development of the Corporation's oil and gas interests, including the drilling of a natural gas exploration well in the Altares area of British Columbia as announced in a press release issued on March 4, 2004, as well as for general working capital purposes.
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