By Sheri Kasprzak
Atlanta, April 28 - K2 Energy Corp. said it has raised an additional C$310,000 through the partial exercise of its over-allotment option on a previously wrapped C$1.66 million private placement of secured convertible debentures.
Placement agent First Associates Investments Inc. partially exercised its over-allotment option for the additional funds. The placement agent had been granted a greenshoe for up to C$400,000.
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.
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
|
| Amount: | C$310,000 (greenshoe)
|
| Maturity: | April 30, 2006
|
| Coupon: | 10%
|
| Price: | Par
|
| 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
|
| Warrant strike price: | C$0.05
|
| Placement agent: | First Associates Investments Inc.
|
| Pricing date: | April 1
|
| Settlement date: | April 22
|
| Greenshoe exercised: | April 27
|
| Stock price: | C$0.04 at close April 1
|
| Stock price: | C$0.05 at close April 22
|
| Stock price: | C$0.045 at close April 27
|
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