Ranger Canyon Energy Inc.

January 18, 2008 16:15 ET

Ranger Canyon Announces Completion of Debenture Financing

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2008) - Ranger Canyon Energy Inc. ("Ranger" or the "Corporation") is pleased to announce that it has completed a non-brokered private placement of 1,200 unsecured subordinated convertible debentures and detached warrants (the "Offering") at a price of $1,000 per debenture raising gross proceeds of $1,200,000. The debentures shall bear 12% interest, payable quarterly. If the debenture has not been repaid by January 18, 2009, it is convertible, at the holder's option, into common shares of the Corporation at $0.10 per common share. Of the Offering proceeds, $500,000 will be immediately available to the Corporation, and the remainder will be held in escrow, releasable if the common shares of the Corporation are listed on the TSX Venture Exchange Inc.

Each subscriber will also be issued 1.5 detached warrants to purchase common shares for every $1.00 of aggregate debenture subscription price. Each whole warrant entitles the holder to acquire one common share of the Corporation at a price of $0.20 per share, for a period of 24 months following the closing date of this Offering.

Insiders of Ranger purchased $250,000 of the Offering. The Corporation paid a finder's fee of $84,000 or 7% of the proceeds raised. The debentures and warrants issued in connection with this financing are subject to a four-month hold period. The net proceeds from the Offering will be used to fund exploration activities and for general working capital.

Contact Information

  • Ranger Canyon Energy Inc.
    Gary Waters
    (403) 265-5115