Canadian Quantum Energy Corporation made the announcement that, pursuant to the investment agreement with the BVI-registered company Lang International Holdings Limited and Douglas Brett, the President and CEO of Canadian Quantum, the company completed the first tranche of previously announced private placement offering of its common shares.
Pursuant to the closing of the first tranche, the BVI company purchased 11,660,000 Common Shares at a price of US$0.10 per Common Share for gross proceeds of US$1,166,000. The additional tranche of the Equity Private placement is also anticipated. Additionally, upon the closing of the first tranche, Canadian Quantum repaid the short term loan from Lang in the amount of $350,000.
Canadian oil and gas company also announced that its subsidiary purchased certain seismic equipment from an associate of Lang, at a purchase price of 10,971,000 Common Shares, that were issued to Lang, at a deemed price of $0.10 per Common Share. Concurrently with the closing of the Equity Private Placement, Canadian Quantum also completed the previously announced Debenture Private Placement, pursuant to which the BVI company purchased Series 1 Debentures in the principal amount of US$935,239.73 and the holders of the previously outstanding debentures purchased Series 1 Debentures in the principal amount of US$935,239.73.
Under the Equity Private Placement, Lang acquired 11,660,000 Common Shares, 10,971,000 were acquired by the BVI company under the Asset Acquisition, and Series 1 Debentures in the principal amount of $935,239.73 were acquired under the Debenture Private Placement. Therefore, Lang will hold 22,631,000 Common Shares or approximately 39.49 per cent of the total issued and outstanding Common Shares, and Series 1 Debentures in the principal amount of US$935,239.73. Assuming the conversion of such Series 1 Debentures, Lang would own or control 30,424,664 Common Shares or approximately 46.74% of the total issued and outstanding Common Shares. The purchase of the securities by Lang was made for investment purposes.
