Lignol raises USD 4.6m in private placement

Dec 18, 2012 - Canadian biorefining technology company Lignol Energy Corp (CVE:LEC) said Monday it had raised CAD 4.5 million (USD 4.6m/EUR 3.5m) in gross proceeds from the private placement of 26.7 million units.

Net proceeds from the offering will be used to boost general working capital and for other corporate purposes.

The units, which were priced at CAD 0.15 each, consist of one common share and a half of a common share purchase warrant. A whole warrant will entitle the holder to buy one additional common share at a price of CAD 0.20 per share within two years of the closing of the offering.

Within the placement, Difference Capital Funding Inc has subscribed for 9 million units, bringing its total equity interest in the company to 19.8%. Additionally, in connection with the placement, Wasabi Energy Ltd (ASX:WAS) converted the debenture it owns into 15 million common shares at an exercise price of CAD 0.15 each. Wasabi got the debenture, together with cash and Lignol stock, back in August in exchange for an 11% stake in biodiesel producer Australian Renewable Fuels Ltd (ASX:ARW).

Canaccord Genuity Corp, acting as agent of the sale, has been granted an option to sell up to an additional 6.7 million units for gross proceeds of up to CAD 1 million.

(CAD 1 = USD 1.017/EUR 0.772)

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