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CALGARY, Aug. 2, 2012 /CNW/ - Bowood Energy Inc. ("Bowood" or the "Company") is pleased to announce that it has closed its previously announced private placement of units (the "Financing"). Pursuant to the Financing, Bowood issued a total of 120,000,000 units at a price of $0.05 per unit for gross proceeds of $6,000,000. Each unit was comprised of one common share of Bowood and one warrant exercisable to purchase one common share at an exercise price of $0.065 for a period of 36 months. Securities issued pursuant to the Financing will be subject to a four month hold period.
The Financing was co-led by a syndicate of agents consisting of GMP Securities L.P., Macquarie Capital Markets Canada Ltd. and FirstEnergy Capital Corp. Directors and officers of Bowood purchased a total of 31,500,000 units under the Financing.
In conjunction with the closing of the private placement, Bowood's credit facility with the Canadian Western Bank has been increased from $5.7 million to $7.0 million. The net proceeds (approximately $5.7 million, after agent's fees and expenses) of the Financing will be used to reduce outstanding indebtedness under Bowood's credit facility, which may be subsequently redrawn to fund capital expenditures and for general corporate purposes.
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 news release.
SOURCE: Bowood Energy Inc.
For further information:
Trent J. Yanko, P.Eng.
President + CEO
Vice President, Finance + CFO
4400, 525 - 8th Avenue S.W.
Calgary, AB T2P 1G1