NEWS: KOB changes mind on latest PP
Kookaburra Resources Ltd. - Revised financing with Xenolith Limited
TSE Symbol: KOB
VANCOUVER, Sept. 28 /CNW/ - The convertible debenture financing with Xenolith Gold Limited (Xenolith) announced September 18, 2000 will not proceed. Xenolith is an insider of the Company holding greater than 10% of the issued and outstanding shares.
A private placement of 600,000 units at $1.06, being the closing price of September 28, 2000, has been arranged with Xenolith.
Each unit comprises a share and a share purchase warrant. Each share purchase warrant will entitle the holder to purchase an additional share for two years at $1.06 per share.
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IMO, this deal is not as good for the shareholder as the convertible debenture deal, as each unit carries a full warrant in addition to the share.
Under the deal announced Sept. 18th, each unit would have carried half a warrant.
Still, KOB gets $600,000 CDN in the bank.
This is a good deal for Xenolith gold.
I wonder if the Haywood cross of 550,000 shares of KOB (at $1.15) last Monday Sept. 18th had anything to do with financing this?
600,000 x $1.06 = $636,000
550,000 x $1.15 = $632,500
Sell the shares out of your existing pool, then replace them with a new issue, gaining 50,000 shares and a warrant exercisable for 2 years at $1.06.
Not a bad deal, if you can swing it.
But then again, I may be wrong.
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