Business
Bengal Energy Announces Closing of $8.0 Million Private Placement
CALGARY , July 5, 2013 /CNW/ - Bengal Energy (TSX: BNG) ("Bengal", or the "Company") i...
About this update from Bengal Energy Ltd.
[{"type":"text","content":"\n\n\nCALGARY, July 5, 2013 /CNW/ - Bengal Energy (TSX: BNG) (\"Bengal\", or the \"Company\") is pleased to announce the closing of its\n previously announced non-brokered private placement of 8,000 units\n (\"Units\") of the Company at a price of $1,000 per Unit for aggregate\n gross proceeds of $8.0 million (the \"Private Placement\").  The proceeds\n from the Private Placement will be used to fund the Company's\n previously announced purchase of an additional 5.357% interest in its\n key property, Cuisinier, located in the Cooper-Eromanga Basin in\n Queensland, Australia (the \"Acquisition\").  Following closing of the\n Acquisition, Bengal's net production participation will increase by\n more than 20%.\n\n\nEach Unit consists of $1,000 principal amount of 10% unsecured\n non-convertible redeemable notes (\"Notes\") and either: (i) 156.25\n common share purchase warrants (\"Warrants\"), in the case of\n subscriptions by non-insiders, or (ii) 156.25 value appreciation rights\n (\"VARs\"), in the case of subscriptions by insiders.  The Notes bear\n interest at a rate of 10% per annum, payable quarterly, and have a term\n of 36 months. Following the first anniversary of the closing date (the\n \"Closing Date\") of the Private Placement, the Company shall be required\n to make quarterly repayments of the outstanding principal of Notes in\n an amount equal to 6.25% of the principal amount of Notes outstanding\n on the last day of each applicable quarter.  Each whole Warrant\n entitles the holder thereof, for a period of 36 months following the\n Closing Date, to acquire one common share (a \"Common Share\") in the\n capital of the Company at a purchase price equal to $0.75 per share. \n Each whole VAR entitles the holder thereof, for a period of 36 months\n following the Closing Date, to exercise the VAR and thereby receive a\n cash payment equal to the difference between the market price of one\n Common Share on the exercise date and $0.75.  Certain insiders of the\n Company purchased 3,500 Units representing over 40% of the total Units\n issued, and 4,500 Units were purchased by non-insiders.\n\n\nThis press release does not constitute an offer of the Notes, Warrants\n (or the Common Shares issuable on the exercise thereof) or the VARs\n (collectively, the \"Securities\") for sale in the United Sta...