ONA ENERGY ANNOUNCES $15 MILLION PRIVATE PLACEMENT
Vancouver, British Columbia May 25, 2007, Ona Energy Inc. (CNQ: OEIX / Frankfurt: O3X)
announces that the company intends to raise up to $15,000,000 by issuing a combination of convertible debt
and equity, as described below.
The company will conduct a private placement of up to 5,000,000 units at $ 1.00 per unit. Each unit will
consist of a common share and a common share purchase warrant. Each common share purchase warrant
will entitle the holder to purchase, for a period of two years, an additional common share at an exercise price
of $1.50.
The company will also conduct a private placement of convertible debentures in the aggregate principal
amount of up to $10,000,000. The convertible debentures will be due in three years from closing and will
bear interest at the rate of 8% per annum. The convertible debentures may be converted into common shares
of the company at the rate of $1.50 per common share, at any time prior to the due date.
The Company may pay a finder’s fee or commission in connection with the private placements.
The proceeds from the private placements will be applied primarily to fund the acquisition of a 60 percent
equity interest in the joint-venture of the Yongxing Power Plant Corporation (YPPC), as previously
announced in the Company’s news release of April 24, 2007. Closing of the private placement will be
concurrent with, and subject to, the acquisition of the 60% interest in YPPC.
ONA Energy Inc. (www.onaenergy.com) is a Canadian-based international energy company focused on the
acquisition and development of power generation and oil & gas projects.
|
