Challenger Energy $14-million convertible loan

2009-02-27 19:07 EST - Private Placement - Debenture

The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Sept. 25, 2008.

Convertible loan: $14-million

Conversion price: Convertible into units consisting of one common share and one-half of one share purchase warrant at a rate of $3.00 per unit. Each unit warrant will be exercisable for one common share at a price of $3.50 for a period of one year from the date of issuance.

Maturity date: March 1, 2009

Bonus warrants: 500,000 bonus warrants; each bonus warrant is exercisable for one common share at a price of $3.50 until Oct. 2, 2009.

Interest rate: 10 per cent per year

The company has the option to pay the interest by issuing shares at a deemed price equal to the volume weighted average trading price for the 10 days ending immediately prior to Dec. 31, 2008, being $1.37 per share.

Hidden placees: one