BNK Petroleum Intends to Complete Private Placement
BNK Petroleum intends to complete a non-brokered private placement of up to 17,000,000 common shares at Cdn.$0.30 per share for gross proceeds of Cdn.$5,100,000, subject to the approval of the Toronto Stock Exchange.
From the net proceeds of the financing, the Company intends to make a U.S.$500,000 loan payment to Bankers Petroleum Ltd. ("Bankers") under its subordinated loan agreement with Bankers (the "Subordinated Loan"), and repay U.S. $1 million of unsecured non-interest bearing loans previously made to the Company by three of its directors and its Chief Executive Officer to assist the Company in obtaining a waiver from Bankers of certain repayment obligations under the Subordinated Loan that would have been otherwise applicable in connection with the closing of the Company's previously announced credit facility with Wells Fargo Energy Capital, Inc. The balance of the net proceeds will be used by the Company for general working capital purposes.
All common shares issued pursuant to this financing will be subject to a four month hold period commencing on the date of the closing. Closing is expected to occur on or about July 15, 2009, subject to receipt of all necessary regulatory and stock exchange approvals.