NR PP $2.5 m
posted on
Apr 16, 2010 11:52AM
Edit this title from the Fast Facts Section
Calgary, Alberta – Longford Energy Inc. (“Longford” or the “Company”) (TSX-V: LFD) is pleased to announce that it has closed its previously announced non-brokered private placement for gross proceeds of $2,500,000 based on the issuance of 8,333,333 units of the Company at a price of $0.30 per unit (“Unit”) (the “Offering”). Each Unit is comprised of one common share and one half of one share purchase warrant, with each share purchase warrant entitling the holder thereof to acquire one Longford common share at a price of $0.65 until October 14, 2011.
The Company intends to use the net proceeds from the financing to further the exploration and development of the Chia Surkh block in the Kurdistan Region of Iraq and for general corporate purposes.
If the closing price of the common shares of the Company on the TSX Venture Exchange is greater than $1.00 for 20 or more consecutive trading days, the Company may give notice to the holders of the share purchase warrants that the expiry date for exercise of the share purchase warrants has been accelerated and the share purchase warrants will expire on the 20th calendar day following the date such notice is mailed.
The common shares, share purchase warrants and the common shares issuable upon the exercise of the share purchase warrants are subject to a hold period until August 15, 2010 pursuant to applicable securities legislation. The Offering remains subject to certain conditions including, but not limited to, final approval of the TSX Venture Exchange.