DENVER, CO, Nov. 24 /CNW/ - Falcon Oil & Gas Ltd. (TSXV: FO) ("Falcon") announces today that it has
entered into an agreement to raise up to $63 million in the form of
units ("Units") priced at $0.15 per Unit (the "Offering Price") by way
of a private placement (the "Offering") with two new investors, the
Orient Group Energy Investment Holding Co Ltd. (the "Orient Group") and
Leisuo Trading Holding Company ("Leisuo"), as well as certain existing
shareholders of Falcon including funds managed by Burlingame Asset
Management LLC and Soliter Holdings Corp. controlled by the Renova
Group. The Offering Price represents an 18% premium to the last months
average trading price. Each Unit will consist of one common share in
the capital of Falcon (each a "Common Share") and three quarters (3/4)
of one common share purchase warrant (a "Warrant"). Each whole Warrant
will entitle the holder thereof to acquire one additional Common Share
at an exercise price of $0.18, representing a 20% premium to the
Offering Price, for a period of three years from the Offering's closing
date (the "Closing Date"). The proceeds from the Offering will be used
to fund Falcon's ongoing capital program and for general corporate
Existing major shareholders will be subscribing, in aggregate, for more
than 36% of the Offering of which 25% of the Offering is from Insiders.
It is expected that on the Closing Date each of the new investors will
own greater than 10% of the Common Shares.
The Orient Group is one of the largest, non-state owned investment
conglomerates in China.
Leisuo Trading Holding Company is a private investment holding company
in China engaged in mining and natural resources in China.
Executive Director of the Orient Group Zhang Xian Feng commented, "We
are pleased to be making this investment in Falcon after careful
technical and corporate study. We believe Falcon has great potential
to unlock value with this proper capitalization. We are long term
investors and believe we have the resources to help Falcon continue to
grow in the future, either through joint ventures at the asset level
with our energy concern or additional investments in Falcon."
Falcon President and CEO Robert Macaulay commented, "I welcome our new
shareholders who are bringing strong commitment and tremendous acumen
to assist our company in moving forward. I am also grateful to our
existing major shareholders who continue to demonstrate their
commitment to Falcon by participating in this financing. This is an
exciting time for the company, with the focus shifting over the near
term towards achieving production tests in some of the high-potential
targets on our acreage in Australia and Hungary, while advancing our
understanding of our recently applied-for exploration license in South
The Offering is subject to all necessary corporate and regulatory
approvals and subject to TSX Venture Exchange acceptance for filing.
All securities issued will be subject to a four-month hold period from
the Closing Date.
The purchase by each of Orient Group and Leisuo are contingent upon
receipt of foreign exchange approval of the People's Republic of China.
Mueller & Co., LLC acted as financial advisor to Falcon in connection
with the transaction.
About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd. is an international oil and gas exploration and
production company, headquartered in Denver, Colorado, incorporated in
British Columbia, Canada, and trading on the TSX Venture Exchange under
the symbol "FO." The company specializes in the business of
unconventional and conventional oil and gas exploration and production
and holds interests in prospective properties in Australia, Hungary,
and South Africa. The company is focused on discovering, acquiring,
and maturing a globally diversified portfolio with a goal of maximizing
shareholder value through strategic relationships. Additional
information concerning Falcon Oil & Gas Ltd. is available at www.falconoilandgas.com. Investor inquiries may be directed to firstname.lastname@example.org
Neither the 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.
SOURCE Falcon Oil & Gas Ltd.
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