Loon Announces $25M Private Placement
Loon Energy Inc. has entered into a private placement subscription agreement with Kulczyk Group International S.a,r,l. ("Kulczyk Group") to issue 25 million common shares at an issue price of $1.00 per common share.
Earlier, the Kulczyk Group acquired in a private transaction its current shareholding of 12,279,763 common shares of Loon, representing approximately 17% of the currently issued and outstanding common shares. Upon satisfaction of all conditions to closing of the proposed transaction, the private placement would increase the total shareholdings of the Kulczyk Group in Loon to 37,279,763 common shares, or approximately 39% of the issued and outstanding common shares of Loon.
The participation of the Kulczyk Group in the private placement is subject to the approval of the TSX Venture Exchange and the approval of the shareholders of Loon at the annual and special general meeting to be held on June 27, 2007. If approved, the private placement is scheduled to close on June 28, 2007.
Loon anticipates that the increased shareholding of the Kulczyk Group in Loon will mark the beginning of a strategic alliance between the two that may expose Loon to additional opportunities and alternative sources of capital.
The Kulczyk Group is the recently incorporated international holding company of Kulczyk Holding S.A., a Polish company with a European scope and international dimension and one of Poland's largest private capital groups. To date Kulczyk Holding S.A has invested successfully over US$3 billion in a diverse and varied portfolio of projects across a range of sectors including oil refining and downstream activities, infrastructure, telecommunications, brewing, insurance, finance, automotive, transportation and real estate.
The Kulczyk Group is controlled by Dr. Jan Kulczyk, a successful international entrepreneur. He is on the Board of Directors of Green Cross International, an international environmental organization whose Chairman is Mikhail Gorbachev. At one point his companies controlled 23% of the assets of the Polish Stock Exchange.
Loon is an international oil and gas exploration and production company having interests in Brunei, Syria, Colombia, Peru and Slovenia, with offices in Calgary, Alberta, Canada and Dubai, United Arab Emirates.