Canoel Announces Closing Of Third Tranche
20 May 2014 - 11:26PM
Access Wire
Calgary, Alberta / ACCESSWIRE / May 20,
2014
/ Canoel International
Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE: CIL) is
pleased to announce, subject to regulatory approval, the completion
of the third tranche of a non-brokered private placement of units
("Units"). Canoel issued an aggregate of 843,333 Units in this
second tranche at a price of $0.15 per Unit for gross proceeds of
approximately $126,500.
Each Unit consists of one common
share in the capital of Canoel and one common share purchase
warrant. Each common share purchase warrant entitles the holder
thereof to purchase, subject to adjustment, one additional common
share at an exercise price of $0.25 per share at any time on or
before the date that is 36 months from the date of issuance of the
common share purchase warrant.
In connection with this second
tranche of the private placement, the Company will pay aggregate
finder's fees of $2,100 and grant an aggregate of 8,000 common
share purchase warrants to finders (the "Finder's Warrants"). Each
Finder's Warrant entitles the holder to acquire one common share at
an exercise price of $0.25 for a period of 36 months from
issuance.
In addition to any resale
restrictions under applicable securities legislation, all
securities issued under the private placement will be subject to a
four month hold period.
Dario Sodero, a director of the
Company purchased 50,000 Units in this tranche of the private
placement through Planaval Resources Ltd. The issuance of Units to
Planaval Resources Ltd. pursuant to the private placement is
considered to be a related party transaction subject to TSX Venture
Exchange Policy 5.9 and Multilateral Instrument 61-101. Canoel is
relying on the exemptions from the formal valuation and minority
shareholder approval requirements provided under sections 5.5(a)
and 5.7(a) of Multilateral Instrument 61-101 on the basis that
participation in the private placement by Planaval Resources Ltd.
did not exceed 25% of the fair market value of the Company's market
capitalization.
The proceeds from this offering will
be used to finance the Company's operations and to augment its
unallocated working capital. This transaction is subject to the
submission of final documentation and final approval of the TSX
Venture Exchange.
Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking
Statements
This news release contains forward-looking
statements and forward-looking information within the meaning of
applicable securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
information or statements. More particularly and without
limitation, this news release contains forward looking statements
and information concerning the completion of the private placement.
The forward-looking statements and information are based on certain
key expectations and assumptions made by Canoel, including the
ability to obtain the required Exchange approval. Although Canoel
believes that the expectations and assumptions on which such
forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the forward
looking statements and information because Canoel can give no
assurance that they will prove to be correct. By its nature, such
forward-looking information is subject to various risks and
uncertainties, which could cause the actual results and
expectations to differ materially from the anticipated results or
expectations expressed. These risks and uncertainties, include, but
are not limited to, Canoel being unable to obtain the required
Exchange approvals. Readers are cautioned not to place undue
reliance on this forward-looking information, which is given as of
the date hereof, and to not use such forward-looking information
for anything other than its intended purpose. Canoel undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by law.
For further
information, please contact:
Jose Ramon Lopez Portillo
Andrea Cattaneo
Chairman of the Board CEO
& President
Email: info@canoelenergy.com
Telephone: (403) 938-8154
Telefax: (403) 775-4474
This press
release is not to be distributed to U.S. newswire services or for
dissemination in the United States. Any failure to comply with this
restriction may constitute a violation of U.S. securities law.
SOURCE: Canoel International Energy Ltd.
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