FINANCING / K2 Energy Financing over-subscribed
CALGARY, Feb. 3 /CNW/ - Mr. Jim Livingstone, President of K2 Energy Corp.
is pleased to announce that the Company today closed a private placement
financing with Brawley Cathers Limited of Toronto.
The financing originally involved the offering of up to 3,000 Units at a
price of $1,000 per Unit, each Unit consisting of a $1,000 principal amount 9%
Convertible Debenture and 575 Share Purchase Warrants. Strong response to the
offering has resulted in an increase in the issue to 5,000 Units for total
gross proceeds of $5,000,000.
The Debentures mature on February 4, 2003 and each $1,000 Debenture is
convertible into 575 Common Shares of K2. Each Share Purchase Warrant
entitles the holder to purchase one common share of the Company at a price of
$2.25 per share, exercisable up to January 31, 2000.
The proceeds from the offering will be used to repay a short-term loan in
the amount of $1,000,000 and fund the Company's ongoing exploration and
development program on its Montana properties.
K2 Energy Corp. is publicly traded company on the Toronto Stock Exchange
under the symbol ''KTO.'' |
