Longford Energy Closes $30MM Bought Deal Financing
Longford Energy has closed its previously announced equity financing, including the exercise, in full, of the underwriters' option, for total gross proceeds of $30 million. Pursuant to the financing, the Company has issued 75,000,000 units at a price of $0.40 per unit. Each unit was comprised of one common share and one common share purchase warrant, with each share purchase warrant entitling the holder thereof to acquire one Longford common share at a price of $0.75 at any time prior to July 7, 2011.
The Company intends to use the net proceeds from the financing for general corporate purposes and for the pursuit of, and satisfaction of
financial commitments in respect of, an interest in a Production Sharing Contract ("PSC") for the exploration, development and production of hydrocarbon resources.
Canaccord Capital Corporation, as lead underwriter, GMP Securities L.P. and Haywood Securities Inc. (collectively, the "Underwriters") acted as underwriters for the financing. The Underwriters have received a cash commission equal to 6% of the gross proceeds of the Offering along with 4,500,000 compensation options, which options entitle them to acquire an equal number of Longford common shares at a price of $0.75 per share at any time prior to July 7, 2010.
All securities issued pursuant to the private placement are subject to a four month hold period.