Artisan Energy Corp. (TSXV: AEC.V) undertook a nonbrokered private placement, of up to $5 million, of secured convertible debentures, the company said April 23.

Artisan undertook the placement with a group that has participated in other nonbrokered private placements, the company said.

The private placement is scheduled to close May 31, Artisan added.

The debentures have a three-year term, will bear interest at 9% annually and can be converted into common shares at any time, the company said.

Proceeds will fund working capital deficiency and support some operations, the company added.

Additionally, Tallinn Capital Corp., the company’s lender, agreed to adjust Artisan’s CA$3,740,000 loan facility, the company said. The facility is scheduled to mature on April 30, the company added. The facility is scheduled to be extended to Dec. 31, but this depends on closing the debenture private placement, Artisan noted.

Further, the company noted that its purchase and sale agreement with Magnum Energy Inc. (TSXV: MEN) will not move forward, and that it withdrew its short-form prospectus brokered financing. The agreement was related to Magnum Energy’s 50% operated working interest in the Provost area, Artisan added.

Calgary, Alberta-based Artisan Energy Corp. produces oil and natural gas in the province.