By Sheri Kasprzak
Atlanta, April 22 - K2 Energy Corp. said it has closed its previously announced C$1.66 million private placement of convertible secured debentures.
The debentures bear interest at 10% annually, mature April 30, 2006 and are convertible into common shares at a rate of C$1,000 in principal into 20,000 common shares, equal to a conversion price of C$0.05 each.
The investors will also receive bonus warrants for 20,000 common shares for each C$1,000 in principal of debentures purchased. The warrants are exercisable at C$0.05 each through April 30, 2006.
Placement agent First Associates Investments Inc. also has an over-allotment option to place up to C$400,000 in additional principal in the deal.
Based in Calgary, Alta., K2 Energy is an oil and natural gas exploration company. The proceeds from the offering will be used for exploration expenses and working capital.
| Issuer: | K2 Energy Corp.
|
| Issue: | Convertible secured debentures
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| Amount: | C$1.66 million
|
| Greenshoe: | For C$400,000 in principal
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| Maturity: | April 30, 2006
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| Coupon: | 10%
|
| Price: | Par
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| Yield: | 10%
|
| Conversion price: | C$0.05
|
| Conversion ratio: | C$1,000 in principal into 20,000 common shares
|
| Warrants: | For 20,000 shares for each C$1,000 in principal purchased
|
| Warrant expiration: | April 30, 2006
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| Warrant strike price: | C$0.05
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| Placement agent: | First Associates Investments Inc.
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| Pricing date: | April 1
|
| Settlement date: | April 22
|
| Stock price: | C$0.04 at close April 1
|
| Stock price: | C$0.05 at close April 22
|
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