Brownstone Ventures Inc. (“Brownstone”) (“BWN”: TSXV) is pleased to announce that it has closed its previously announced private placement of units raising gross proceeds of $10,000,000. Pursuant to the financing, Brownstone issued 4,000,000 units at a price of $2.50 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of Brownstone at an exercise price of $3.00 per share until May 7, 2009.
PowerOne Capital Markets Limited acted as agent (the “Agent”) in connection with the financing. As compensation for its services under the private placement, the Agent received a cash commission of $700,000 and compensation options entitling the Agent to purchase up to 320,000 compensation units at a price of $2.50 per compensation unit (each compensation unit having the same terms as the units issued in the financing) until May 7, 2009.
All of the foregoing securities issued in connection with the financing are subject to a hold period until September 8, 2007. The financing remains subject to final approval of the TSX Venture Exchange.
Proceeds of the sale of the units will be used for general corporate purposes.
About Brownstone – Brownstone Ventures Inc. (“Brownstone”) is a Canadian-based, energy-focused company with direct interests in oil and gas exploration projects. For additional information, please see Brownstone’s website: http://www.brownstoneventures.com/.