CALGARY, Feb. 25 /CNW/ - COSTA Energy Inc. ("COSTA" or the "Company")
(TSX Venture Exchange: COE) is pleased to announce that it has closed the
previously announced financing and has issued 990,000 units at $1.00 per unit
consisting of $1.00 principal amount of secured, non-convertible subordinated
debentures and 0.67 of one common share purchase warrant. The $990,000
principal amount of debentures bears interest at 12% per annum and has a
maturity date of December 31, 2008. Each one warrant will entitle the holder
thereof to purchase one common share at a price of $0.10 per share until
June 30, 2009. Gross proceeds from the sale of the units of $990,000 will be
used to repay $883,000 of outstanding debentures (including $93,000 held by a
director) and for working capital purposes. Two directors (including the
aforementioned) acquired 250,000 units. The debentures and warrants issued
pursuant to this private placement will be subject to a four month statutory
hold period. Fees of $16,100, being 2.0% of the gross proceeds, were paid to
finders that arranged for subscriptions of $805,000.
With this new financing, COSTA now has 43,260,735 common shares,
29,964,909 warrants and 1,489,722 options to acquire an equivalent number of
common shares, issued and outstanding. Management and directors, MHI Energy
Partners and/or their associates and affiliates now hold 13,692,745 common
shares, 10,044,460 warrants and 1,307,222 options; approximately 34% on a
fully diluted basis.
COSTA is a Calgary based junior oil and gas company, which develops,
produces, and sells crude oil, natural gas liquids and natural gas in Alberta.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Requests for information should be directed to:
Mr. Terry D. Brooker, President and CEO, COSTA Energy Inc., (403) 206-3430,