Business
Bengal Energy Announces $8.0 Million Private Placement to Fund Acquisition of Additional Interest in Cuisinier
CALGARY , July 4, 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 4, 2013 /CNW/ - Bengal Energy (TSX: BNG) (\"Bengal\", or the \"Company\") is pleased to announce that it will be\n conducting a non-brokered private placement of 8,000 units (\"Units\") of\n the Company at a price of $1,000 per Unit for aggregate gross proceeds\n of $8.0 million (the \"Private Placement\").  The proceeds from the\n Private Placement will be used to fund the Company's previously\n announced exercise of a pre-emptive right to purchase an additional\n 5.357% interest in the Cuisinier Oil Field and Authority to Prospect\n (\"ATP\") 752P (the \"Acquisition\") in the Cooper-Eromanga Basin in\n Queensland, Australia,.  Upon completion of the Acquisition, the\n Company's total ownership in Cuisinier will increase to 30.357%,\n resulting in Bengal's net production participation increasing by more\n than 20%.\n\n\nEach Unit will consist 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 Common\n Share.  Each whole VAR entitles the holder thereof, for a period of 36\n months following the Closing Date, to exercise the VAR and thereby\n receive a cash payment equal to the difference between the market price\n of one Common Share on the exercise date and $0.75.  Certain insiders\n of the Company are expected to purchase 3,500 Units under the Private\n Placement, representing over 40% of the Notes. The Private Placement is\n anticipated to close on or around July 5, 2013.\n\n\n\"We...