Brownstone Closes Private Placement
Brownstone has closed its previously announced non-brokered private placement financing, pursuant to which it has issued an aggregate of 20,000,000 units at a price of $0.55 per Unit to raise aggregate gross proceeds of $11,000,000. Each Unit consists of one common share of Brownstone and one-half of one share purchase warrant (each whole such share purchase warrant, a "Warrant"), each Warrant entitling the holder to acquire one additional common share of Brownstone until April 13, 2012 (the "Warrant Term") at an exercise price of $0.75 per share, provided however that if, following the expiry of the four month hold period, the closing price of Brownstone's common shares exceeds $1.25 for 20 consecutive business days, then the Warrant Term shall be automatically reduced and the Warrants will expire on the date that is 30 days following the issuance of a press release announcing the reduced Warrant Term. All securities issued in the financing are subject to a statutory hold period expiring on August 14, 2010. Insiders of the Company subscribed for an aggregate of 2,904,220 Units in the financing.
In connection with the private placement, Brownstone has paid finder's fees in the aggregate amount of $718,833.50 to certain finders assisting in the offering (representing 7% of the gross proceeds raised by such finders), and issued an aggregate of 1,493,680 compensation warrants ("Compensation Warrants") to such finders (representing 8% of the aggregate number of Units sold by such finders). Each Compensation Warrant entitles the holder to acquire one Unit at an exercise price of $0.55 per Unit until April 13, 2012.
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