Longford Corporation
TSX VENTURE : LFD

May 18, 2006 14:50 ET

Longford Corporation Closes Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - May 18, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES

Longford Corporation (TSX VENTURE:LFD) announced today that it has closed its previously announced brokered private placement of 16,677,616 Units at a price of $0.30 per Unit for gross proceeds to the Company of $5,003,284.80. Each Unit consists of one common share and one half of one warrant. Each whole warrant entitles the holder to purchase one common share at an exercise price of $0.35 until November 18, 2007.

Canaccord Adams, Dominick & Dominick Securities Inc. and Bolder Investment Partners Ltd. (the "Agents") acted as agents on a commercially reasonable best effort basis in connection with the brokered private placement. The Agents received a commission of 8% of the gross proceeds raised in this private placement, as well as an aggregate of 1,334,209 Agents' Warrants. Each Agents' Warrant entitles the Agents to purchase, at an exercise price of $0.35, one common share of the Company until November 18, 2007.

Cannacord Adams ("Canaccord") received a fee of $30,000 and 150,000 Corporate Finance Units. Each Corporate Finance Unit consists of one common share and one half of one warrant. Each whole warrant entitles Canaccord to purchase one common share at an exercise price of $0.35 until November 18, 2007.

In addition, the Company has closed a non-brokered private placement financing of 1,173,333 Units at a price of $0.30 per Unit for gross proceeds from the non-brokered private placement of $352,000. Each Unit consists of one common share and one half of one warrant. Each whole warrant entitles the holder to purchase one common share at the price of $0.35 until November 18, 2007.

The securities issued in connection with the brokered and non-brokered private placements are subject to a hold period that will expire on September 19, 2006.

The net proceeds from the sale of the Units will be used for exploration of the Company's coal bed methane projects in Alberta, Canada and Alabama, USA, and for general working capital.

The Company has also granted options to purchase 1,500,000 common shares of the Company at $0.37 per common share for a period of five years to officers, directors and consultants of the Company, subject to regulatory approval.

Longford Corporation is a Canadian junior resource company listed on the TSX Venture Exchange under the symbol "LFD". The Company is focused on exploring for and developing North American oil and gas assets.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.


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Contact Information

  • Longford Corporation
    David Walters
    President & C.E.O.
    (403) 263-3000 x 298