Brownstone Ventures Inc.

Brownstone Ventures Inc.

April 12, 2007 17:25 ET

Brownstone Announces Financing

TORONTO, ONTARIO--(CCNMatthews - April 12, 2007) - Brownstone Ventures Inc. (TSX VENTURE:BWN), is pleased to announce that it has entered into an agreement with PowerOne Capital Markets Limited (the "Agent") to raise up to $10,000,000 on a commercially reasonable basis, by way of a brokered private placement of up to 4,000,000 units (the "Units") at a price of $2.50 per Unit.

Each Unit will consist of one common share in the capital of Brownstone and one-half of one common share purchase warrant of Brownstone. Each whole common share purchase warrant will entitle the holder to purchase one common share of Brownstone at any time within 24 months after the closing date of the financing at an exercise price of $3.00 per share.

Upon closing, the Agent will receive a cash commission equal to 7% of the gross proceeds raised under the private placement and that number of warrants (the "Agent's Warrants") equal to 8% of the number of Units sold under the private placement. Each Agent's Warrant will be exercisable for one Unit at a price of $2.50 per Unit for a period of twenty-four months from closing.

As of the date of this release, Pinetree Capital Ltd. is a securityholder of each of Brownstone and the Agent. Brownstone is a "related issuer" and may be considered to be a "connected issuer" to the Agent for purposes of applicable securities legislation.

Closing of the private placement is subject to receipt of all necessary regulatory approvals. The securities issued will have a hold period expiring four months and one day from the date of closing. Proceeds from the sale of the Units will be used for general corporate purposes.

About Brownstone - Brownstone Ventures Inc. ("Brownstone") is a Canadian-based, energy focused investment company with equity investments in uranium and oil & gas, as well as direct interests in oil and gas exploration projects. For additional information, please see Brownstone's website:

The TSX Venture Exchange does not take responsibility for the adequacy or accuracy of this release.

Contact Information

  • Brownstone Ventures Inc.
    Richard Patricio
    Vice-President Corporate and Legal Affairs
    (416) 941-8900