Shona Energy Company, Inc. announces closing of arrangement with Rodeo Capital II Corp.

CALGARY, Sept. 27, 2011 /CNW/ - Shona Energy Company, Inc. (the "Company" or "Shona") is pleased to announce that, further to the August 24, 2011 news release of Rodeo Capital II Corp., ("Rodeo II"), on September 20, 2011 the securityholders of both Rodeo II and the Company approved the amalgamation and plan of arrangement (the "Arrangement") of the Company with its wholly-owned subsidiary, 0910803 BC Ltd., Rodeo II, and Rodeo II's wholly-owned subsidiary, 0910703 BC Ltd. Rodeo II continued into the province of British Columbia and consolidated its shares on a 2.5:1 basis. On September 24, 2011, the Company and Rodeo II were granted a Final Order from the Supreme Court of British Columbia approving the Arrangement. The Arrangement constitutes Rodeo II's qualifying transaction (the "Transaction") under the policies of the TSX Venture Exchange.

The Transaction closed on September 27, 2011. The aggregate funds raised by the Company and Rodeo II in conjunction with the Arrangement, approximately $32.5 million, were released from escrow upon closing of the Transaction, and 45,961,731 Class "A" common shares in the capital of the Company ("Shares") were simultaneously issued to former holders of subscription receipts.

Also upon closing of the Transaction, 1,412,000 Shares were issued to former holders of Rodeo II common shares. And 115,962,846 Shares were issued to former holders of Shona common shares, including the former holders of Shona special warrants. In addition, 72,231,263 Class "B" Non-Voting common shares in the capital of the Company (convertible to Shares at the discretion of the Board of Directors) were issued to US Affiliates of the Company.  In addition, new preferred shares and warrants were issued to former holders of those classes of the Company's securities on the same terms and conditions.

Management, directors and insiders of the Company, as a group, beneficially own, directly or indirectly, approximately 33% of the issued and outstanding Class "A" and Class "B" common shares.

Subject to receipt of the TSX Venture Exchange's final bulletin, it is anticipated the Shares will trade on the TSX Venture Exchange on or about Thursday, September 29, 2011 under the symbol "SHO".

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Arrangement and has neither approved nor disapproved the contents of this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE Shona Energy Company, Inc.

For further information:

Shetal Mentlewski, Corporate Secretary 
Contact:; Houston Office: (713) 622-8809

Profil de l'entreprise

Shona Energy Company, Inc.

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