Longford Energy Issues $15MM Underwritten Private Placement
Longford Energy Inc. has entered into an agreement with a syndicate of underwriters led by Canaccord Capital Corporation. The Underwriters have agreed to purchase, on an underwritten private placement basis, 18,750,000 units of the Company at a price of $0.80 per unit for total gross proceeds of $15,000,000. Each unit will be comprised of one common share and one-half of one share purchase warrant, with each whole share purchase warrant entitling the holder thereof to acquire one Longford common share at a price of $1.00 for a period of 24 months following closing.
The Company intends to use the net proceeds from the financing for general corporate purposes.
The Company has granted the Underwriters an option to purchase an additional 6,250,000 units at a price of $0.80 for a period of 30 days from the closing of the Offering. In consideration for their efforts, the Underwriters will receive a cash commission equal to 6% of the gross proceeds of the Offering and be issued compensation options that will entitle them to acquire that number of Longford common shares that is equal to 6% of the units sold under the Offering for a period of twelve months from the closing date.
The Offering is expected to close on or about July 10, 2008. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
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