May 12, 2010 (FinancialWire) — Bontan Corp., Inc. (OTCBB: BNTNF) said that it has closed a non brokered private placement financing under which it has issued 37.75 million units at US$0.20 per unit to raise aggregate gross proceeds of $7.55 million.

Each unit consists of one common share of the company and one five-year term purchase warrant. Each warrant entitles the holder to acquire one additional common share of the company at an exercise price of $0.35 per share.

Bontan said that some of the proceeds from the offering have been used with respect to the company's 11% net working interest in the two drilling licenses in offshore Israel: Sarah and Myra.

The company's ownership of theses licenses is held through its 76.8% owned subsidiary: Israel Petroleum Co., Ltd.

Canada-based Bontan is an oil and gas exploration company that operates and invests in exploration prospects. Bontan currently has 78,199,076 common shares issued and outstanding and said it is debt free.

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