| ||November 03, 2010|
$7.5 MILLION GAS LINKED DEBENTURE FIRST TRANCHE CLOSING, RETIREMENT OF CREDIT FACILITY
| ||Vancouver, British Columbia, November 3, 2010 - Thunderbird Energy Corp. (TSX-V: TBD) (the "Company") today announced that effective October 29, 2010, it has closed the first tranche issuance of approximately $7.3 million of the previously announced $7.5 million 3 year, secured, natural gas linked debenture (the "Gas Linked Debentures") offering. The Company anticipates marketing the balance of the issue in November. Purchasers of the Gas Linked Debentures were issued transferable warrants (the "Debenture Warrants") to purchase up to 14,685,000 common shares of the Company at escalating prices between $0.30 and $0.50 per share until October 31, 2013. The Company paid a 7.5% finders fee in respect of a portion of the debenture issuance and issued non-transferable Finder's Warrants to purchase up to 2,018,750 common shares of the Company at a price of $0.20 per share until October 31, 2013. All securities issued pursuant to the first tranche closing are subject to hold periods in Canada expiring March 1, 2011. |
The Company used a portion of the proceeds of the debenture issue to retire and discharge its credit facility (the "Credit Facility") with Macquarie Bank Limited ("Macquarie"). In addition, holders of $1.5 million of the Company's existing $2 million convertible debenture issue have exchanged their debentures for the new Gas Linked Debentures.
In order to facilitate the retirement and discharge of the Credit Facility, Macquarie subscribed for $1,250,000 of the Gas Linked Debentures with 2,500,000 Debenture Warrants. The Company has agreed to use its best efforts to assist with the sale by Macquarie of these securities and Macquarie has agreed to make them available for sale at their cost. As a further term of the agreement with Macquarie, Macquarie has agreed to surrender the 13 million warrants that it currently holds for cancellation and the Company has agreed, subject to regulatory approval, to issue to Macquarie 3 year warrants to purchase up to 8,984,000 common shares of the Company vesting in four equal tranches. The first tranche of 2,246,000 warrants vest immediately and are exercisable at a price of $0.15 per share. Depending on the length of time that Macquarie continues to hold their Gas Linked Debenture investment, up to a further 6,738,000 warrants may vest over the next 9 months at varying exercise prices ranging from the current Market Price of the Company's shares to $0.30 per share. Any of the new warrants that do not vest over the next 9 months will automatically expire.
The Company also wishes to advise that it has closed $725,000 of the previously announced $2 million Unit private placement, by the issuance of 4,833,333 Units at a price of $0.15 per Unit. Each Unit consists of one share and one two year warrant to purchase an additional share at a price of $0.20 per share. Securities issued in connection with this issuance are subject to hold periods in Canada expiring January 11, 2011. The Company intends to continue marketing Units pursuant to this offering.
The Company anticipates issuing a news release over the next few days to provide an update regarding the Company's joint venture status and ongoing land acquisition program.
Thunderbird Energy is a Canadian based oil and gas exploration and production Company with interests in the US Rockies and mid-continent regions. Thunderbird's holdings include the Gordon Creek, Utah natural gas field, the Rush County, Kansas light oil project and a light oil exploration project in Weston County Wyoming.
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