CALGARY, May 17 /CNW/ - TrinCan Capital Corp. (TSXV: TRN.P) ("TrinCan" or the "Corporation") is pleased to announce that further to its news release of April 30, 2010, on May 14, 2010 (the "Closing Date") the Corporation closed the acquisition (the "Transaction") of certain heavy oil assets located in the Buzzard area of Saskatchewan (the "Assets"). The Transaction constitutes the Corporation's qualifying transaction pursuant to the applicable policies of the TSX Venture Exchange (the "Exchange").
Pursuant to the terms of the Transaction, the Corporation acquired the Assets for approximately $700,000 in cash (subject to adjustments). The Assets are comprised of certain freehold and Crown non-operated working interests ranging from 25 to 50% in lands located in the Buzzard area of Saskatchewan, approximately 40 km south of Lloydminster.
Contemporaneous with closing of the Transaction, the Corporation completed a private placement financing (the "Private Placement") for aggregate gross proceeds of $850,000, which consisted of the issuance of (i) 6,000,000 units of the Corporation (the "Units") at a price of $0.10 per Unit; and (ii) $250,000 of 10% convertible debentures (the "Convertible Debentures"), maturing two years from the Closing Date, redeemable no earlier than one year from the Closing Date, and convertible into common shares of TrinCan ("Common Shares") at $0.13 per Common Share. Each Unit is comprised of one Common Share and one-half of one Common Share purchase warrant (each whole such warrant a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.20 at any time up to 5:00 p.m. (Calgary time) on the date which is 12 months from the Closing Date. Finder's fees in the aggregate amount of approximately $48,500 will be paid to various parties pursuant to the Private Placement.
The Corporation expects that the trading halt on the Common Shares will be lifted following the Exchange's review of final documentation and the Exchange's issuance of the final bulletin approving the Transaction.
The Exchange has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this news release.
Neither the Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Corporation's beliefs, plans, expectations, anticipations, estimates and intentions and the activities of the Corporation after the Transaction. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Corporation's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licences and leases in the conduct of its business, reliance on third parties, reliance on key personnel, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, competition, environmental matters, and insurance or lack thereof.
The Corporation cautions that the foregoing list of material factors is not exhaustive. When relying on the Corporation's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Corporation has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF the Corporation AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE the Corporation MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
SOURCE TrinCan Capital Corp.
For further information: For further information: Burkhard Franz, Chief Financial Officer and a Director, Telephone: (250) 860-4604, E-mail: email@example.com