Stealth Closes Second Tranche of Private Placement
Stealth has closed the second and final tranche of its $2,496,105 private placement (originally announced as a $2,000,000 private placement on November 19, 2009, as subsequently increased to $2,496,105, as announced on December 8, 2009). The second tranche consisted of the sale of 15,105,714 units at a price of $0.07 per unit, for gross proceeds of $1,057,400, each unit consisting of one common share and one-half (1/2) of a share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.15 until December 31, 2011, provided that, in the event the closing price of Stealth's shares as traded on the TSX Venture Exchange is $0.25 or greater for a period of 30 consecutive trading days, it may give notice of an earlier expiry of the warrants, in which case they would expire 30 calendar days from the giving of such notice. All of the securities issued in connection with the closing of this second tranche are subject to a hold period in Canada until May 1, 2010.
Stealth also announces that Enerflo Singapore Pte. Ltd. ("Enerflo"), a private Singapore company managed by Subra V. Subramaniam, of Calgary, Alberta, purchased all of the 15,105,714 units comprising the second tranche of this private placement. Enerflo has acquired these securities for investment purposes, and may increase its ownership of securities of Stealth in the future, depending upon market conditions. As a result of the purchase of these units, Enerflow now holds 15,105,714 common shares of Stealth, representing 12.01% of the 125,786,686 common shares of Stealth currently issued and outstanding. In addition, Enerflo holds share purchase warrants entitling it to purchase up to 7,552,857 additional common shares of Stealth at a price of $0.15 per share until December 31, 2011, subject to the potential earlier expiry as disclosed above.
Enerflo also announces that it has filed the requisite Early Warning Report on SEDAR as a result of its acquisition of these 15,105,714 units of Stealth.