Lignol Energy Corporation (TSXV:LEC) announced a private placement on a best effort basis of 26,666,667 units at a price of CAD 0.15 per unit for aggregate gross proceeds of up to CAD 4,000,000 on November 16, 2012. Each unit will comprise of one common share and one-half of one common share purchase warrant. Each whole warrant will allow the subscriber to purchase one additional common share for a period of two years from the date of closing at an exercise price of CAD 0.20 per share. Canaccord Genuity Corp., Global Securities Corporation, and Haywood Securities Inc served as agents to the transaction. The company has granted the agent an option to offer up to an additional 6,666,667 units of the company, at the issue price, for additional gross proceeds of up to CAD 1,000,000, exercisable in whole or in part at any time up to 48 hours prior to the closing of the transaction.

It is expected that insiders of the company will subscribe for greater than 25% of the issue. The transaction is subject approval from the TSX venture exchange and is expected to close on December 7, 2012.

On December 17, 2012, Lignol Energy Corporation closed the transaction. The company in total raised CAD 5,665,040.55. The transaction was oversubscribed. The company issued 30,100,270 units for gross proceeds of CAD 4,515,040.50. 22 placees participated in the financing. Difference Capital Funding Inc. subscribed for 9,000,000 units for gross proceeds of CAD 1,350,000. Difference Capital Funding Inc. now holds 19.8% percent in the company, assuming full exercise of the warrants in the transaction. Difference Capital Funding Inc also subscribed for 7,666,667 subscription receipts at CAD 0.15 per subscription receipt for gross proceeds of CAD 1,150,000.05. Each subscription receipt entitles Difference Capital Funding Inc to receive one unit for no additional consideration. The sale of subscription receipt is conditional upon the company receiving approval from the shareholders of the company. If the subscription receipts are exercised, Difference Capital will hold approximately 25.6% of the common shares of the company, assuming full exercise of the warrants purchased as part of the units. Mike Rushton purchased 67,000 units, Gordon Fretwell purchased 200,000 units, Stephen White purchased 200,000 units, Ross MacLachlan purchased 200,000 units, David Lyall purchased 500,000 units, and Wasabi Energy Limited purchased 666,666 units.

The company paid the agents a cash commission of 3% of the gross proceeds of the units on the portion introduced by the agent, 3% of the gross proceeds of the subscription receipt portion, and 8% of the gross proceeds on the remaining units of the transaction. The company also issued agent's warrants exercisable for one common share for a period of two years from the date of closing at an exercise price of CAD 0.20 per share, equal to 10% of the units sold on the portion which were not introduced by the company to the agent. The agent's warrants will expire on December 17, 2014. Canaccord Genuity Corp. received agent's fees of CAD 188,699.96, an administrative work fee of CAD 8,500, 1,169,999 agent's warrants, and 376,252 common shares as a corporate finance fee.