CALGARY, Feb. 14 /CNW/ - Amarone Oil & Gas Ltd. ("Amarone" or the
"Corporation") announces today that it has successfully closed two equity
financings for a total of $77 million in gross proceeds.
The first financing was a previously announced non-brokered private
placement financing of $50,000,001 (the "KERN Financing") with KERN Energy
Partners Management II Ltd. ("KERN"), structured as an equity line at a price
equal to $1.50 per unit. Each unit ("Unit") consists of one special voting
share of the Corporation and one Put and Call Obligation.
The second financing was an oversubscribed $27,000,600 brokered private
placement financing ("Syndicate Financing") through a syndicate of agents led
by FirstEnergy Capital Corp. and including Paradigm Capital Inc.
(collectively, the "Agents"). The Corporation issued 8,408,000 common shares
of Amarone, at a price of $1.50 per common share and 354,000 common shares
issued on a "flow-through" basis at a price of $1.90 per flow-through share
for total gross proceeds of $13,284,600. In addition, 9,144,000 Units of
Amarone were subscribed for under an equity line by major investors ("Major
Investors"), at a price of $1.50 per Unit for total gross proceeds of
$13,716,000. Similar to the KERN Financing each Unit consists of one special
voting share of the Corporation and one Put and Call Obligation.
After giving effect to these financings, Amarone has approximately
11,935,300 common shares issued and outstanding. Upon all common shares being
issued under the KERN and other equity lines, the Corporation will have
54,412,634 common shares outstanding.
Proceeds from this offering will be used to pursue future strategic
acquisition opportunities and will be used to fund the Corporation's
exploration and development program.
Amarone is an emerging, private Calgary based junior oil and natural gas
company focused on building shareholder value through accretive acquisitions,
internally generated exploration and development drilling opportunities and
pursuit of quality, complementary farm-in opportunities.
Certain statements contained in this document are "forward-looking
statements". The projections, estimates and beliefs contained in such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause actual results or events to differ materially
from those anticipated in any forward-looking statements. Amarone believes the
expectations reflected in those forward-looking statements are reasonable;
however Amarone cannot provide any assurance that these expectations will
prove to be correct.
This news release shall not constitute an offer to sell, or the
solicitation of an offer to buy, securities in the United States, or any
province or territory of Canada, nor shall there be any sale of the securities
in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such jurisdiction. Amarone's securities will not be, and have not been,
registered under the United States Securities Act of 1933 and may not be
offered or sold in the United States absent registration or an applicable
exemption from the registration requirements of that Act.
For further information:
For further information: Monty Bowers, Chairman and CEO, T: (403)
265-1805 Ex 321, F: (403) 265-1952, E: firstname.lastname@example.org; Don Stachiw,
President and COO, T: (403) 265-1805 Ex 307, F: (403) 265-1952, E:
email@example.com; Brenda Mawhinney, Vice President Finance and CFO, T:
(403) 265-1805 Ex 317, F: (403) 265-1952, E: firstname.lastname@example.org;
Website: www.amaroneoil.ca (under construction)