Petra Petroleum Inc. Closes Private Placement Financing
14 July 2011 - 6:21AM
Marketwired
Petra Petroleum Inc. (TSX VENTURE: PTL) (the "Corporation") is
pleased to announce that it has successfully completed its
previously announced brokered private placement (the "Private
Placement") of 22,985,000 common shares of the Corporation (the
"Common Shares") at a purchase price of $0.40 per Common Share for
aggregate gross proceeds of $9,194,000.
The Corporation received conditional approval of the Private
Placement from the TSX Venture Exchange (the "Exchange") on June
29, 2011. The Common Shares are subject to a hold period under
applicable securities laws until November 14, 2011.
Jones, Gable & Company Limited (the "Agent") acted as the
exclusive agent for the Private Placement. The Corporation paid the
Agent a commission of 7% of the gross proceeds of the Private
Placement and issued a compensation option entitling the Agent to
subscribe for 1,608,950 Common Shares with an exercise price of
$0.40 per Common Share, exercisable for a period of 24 months after
the date of closing.
Tyrus Capital LLP manages certain funds that subscribed for
22,500,000 Common Shares (representing 36.82% of the issued and
outstanding Common Shares upon completion of the Private
Placement). Prior to the completion of the Private Placement, the
funds managed by Tyrus Capital LLP held no Common Shares. Tyrus
Capital LLP has become a "control person" as defined in the rules
and policies of the Exchange as a result of the Private Placement.
The Corporation has received the requisite written consents from
disinterested shareholders that hold more than 50% of the issued
and outstanding voting shares of the Corporation held by all
disinterested shareholders for the creation of a new control
person.
The net proceeds of the Private Placement will be used by the
Corporation for general working capital purposes and to pay costs
associated with future acquisitions.
Cautionary Statements
This news release contains forward-looking information which is
not comprised of historical facts. Forward-looking information
involves risks, uncertainties and other factors that could cause
actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such
forward-looking information. Forward-looking information in this
news release includes statements with respect to the Corporation's
use of proceeds from the Private Placement. The intended use of
proceeds might change if the board of directors of the Corporation
determines that it would be in the best interests of the
Corporation to deploy the proceeds for some other purpose. Undue
reliance should not be placed on such forward-looking information,
which only applies as of the date of this news release, and no
assurance can be given that such events will occur. The Corporation
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Petra Petroleum Inc. Robert A. Lambert Chief Executive
Officer +44 7837-463-596 Petra Petroleum Inc. Michael Atkinson
Director (604) 689-1428 www.petrapetro.com
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