CIBOLO ENERGY HME, LLC FILES EARLY WARNING REPORT REGARDING EXERCISE OF WARRANTS

HOUSTON, April 18, 2022 /CNW/ -- Cibolo Energy HME, LLC ("Cibolo HME") provides the following early warning disclosure under applicable Canadian securities laws. Cibolo HME acquired ownership of 8,302,686 common shares (the "Common Shares") in the capital of Hemisphere Energy Corporation (the "Corporation") through the cashless exercise of warrants (the "Warrants") at an exercise price equivalent to $1.4367 per Common Share. A copy of the early warning report for Cibolo HME is available under the Corporation's profile on SEDAR.

Immediately prior to the exercise of the Warrants, Cibolo HME and its affiliate Cibolo Energy Partners I, L.P. (together, "Cibolo") owned 2,299,851 Common Shares of the Corporation, and 10,312,500 Warrants of the Corporation. As a result of the exercise of 10,312,500 Warrants, Cibolo HME will own and exercise control over an aggregate of 10,602,537 Common Shares, representing approximately 10.5% of the Common Shares of the Corporation on a non-diluted basis. Cibolo will no longer hold any Warrants of the Corporation.

Cibolo intends to sell approximately 750,000 Common Shares in the near term to reduce its ownership and control of security holdings of the Corporation to below the 10.0% threshold requiring disclosure under National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues ("NI 62-103").

The address of the Corporation is Suite 501, 905 West Pender Street, Vancouver, British Columbia, V6C 1L6. The address of Cibolo HME is Suite 230, 1455 West Loop South, Houston, TX, 77027.

This news release is issued pursuant to NI 62-103, which also requires a report to be filed with regulatory authorities in each of the jurisdictions in which the Corporation is a reporting issuer containing information with respect to the foregoing matters (the "Early Warning Report"). A copy of the Early Warning Report will be available under the Corporation's profile at www.sedar.com, or may be obtained by contacting Joseph Gomez at [phone].  

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States unless an exemption from such registration is available.

Cautionary Note

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 fo this release.

SOURCE Cibolo Energy Partners