/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Oct. 11, 2012 /CNW/ - Emerald Bay Energy Inc. (TSX Venture: EBY) (the "Corporation" or "Emerald Bay") today reported that one shareholder of the Corporation (the "Selling Shareholder") sold an additional 3,683,000 common shares of the Corporation ("Common Shares") at a price of $0.055 per Common Share to members of the public through the assistance of Macquarie Private Wealth Inc. None of the Common Shares sold by the Selling Shareholder are subject to any hold period restrictions. As reported in the Corporation's press release dated October 10, 2012, three shareholders of the Corporation, including the Selling Shareholder, CHF Investor Relations (the Corporation's investor relations firm) and one other shareholder (collectively, the "Selling Shareholders") previously sold an aggregate 12,690,000 Common Shares under similar circumstances (but for the assistance of Mackie Research Capital Corporation instead of Macquarie Private Wealth Inc.).
Subsequent to the above sale of Common Shares, the Selling Shareholders will, subject to the final approval of the TSX Venture Exchange, acquire at least 16,373,000 units (up from the 12,690,000 units as reported in the press release dated October 10, 2012 as a result of today's additional sale of Common Shares) pursuant to a private placement announced on October 3, 2012. The terms of the proposed non-brokered private placement are as follows: up to maximum of 24,000,000 units ("Units") at a subscription price of $0.05 per Unit are to be offered. Each Unit shall consist of one (1) Common Share of the Corporation and one (1) share purchase warrant (the "Warrant") (each full Warrant shall entitle the holder thereof to purchase one (1) additional Common Share of the Corporation for a period of 12 months from the issuance of the Units at a price of $0.10) (the "Offering"). The Warrants are subject to an acceleration clause whereby if after four months and one day following the date the Warrants are issued, the closing price of the Common Shares of the Corporation on the principal market on which such shares trade is equal to or exceeds $0.15 for 30 consecutive trading days (with the 30th such trading date hereafter referred to as the "Eligible Acceleration Date"), the Warrant expiry date shall accelerate to the date which is 30 calendar days following the date a press release is issued by the Corporation announcing the reduced warrant term, provided, no more than five business days following the Eligible Acceleration Date: (i) the press release is issued; and (ii) notices are sent to all warrant holders. The net proceeds will be used for exploration and expansion of the Corporation's South Texas property and general working capital needs.
All of the Common Shares and Warrants issued pursuant to the private placement are subject to a four-month hold period. Completion of the private placement is subject to the final approval of the TSX Venture Exchange.
About Emerald Bay
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with production properties in Western Canada and South Texas. The common shares of Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY". Please visit our website at www.emeraldbayenergy.com.
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Neither 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 release.
SOURCE: Emerald Bay Energy Inc.
For further information:
Emerald Bay Energy Inc.: President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at [email protected],
CHF Investor Relations: Robin Cook, Senior Account Manager, (416) 868-1079 x228, [email protected].