/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES
/
CALGARY
,
Nov. 20
/CNW/ -
Emerald Bay
Energy Inc. (TSX Venture: EBY) (the "Corporation") today reported that the Corporation has closed its previously announced private placement. Pursuant to the private placement, 6,250,000 units ("Units") were issued at a price of
$0.08
per Unit, for aggregate consideration of
$500,000
(of which
$78,000
originated from Insiders of the Corporation). Each Unit consisted of one (1) common share of the Corporation (issued either as a common share or as a "flow-through share" pursuant to the Income Tax Act (
Canada
) (the "Flow-Through Share") at the subscribers option) and one (1) non-transferable 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
$0.15
) (the "Offering"). Of the total 6,250,000 common shares issued under this Offering an aggregate 5,812,500 were issued as Flow-Through Shares. A finder's fee of
$17,500
and a due diligence fee of
$17,500
(plus GST) was paid to First Canadian Securities Inc., a division of Limited Market Dealer Inc. of
Toronto
, Ontario along with the issuance of 437,500 finder's options (the "Finder's Options"). A finder's fee of
$3,200
was paid to Brandt Securities Limited of
Toronto
, Ontario along with the issuance of 40,000 Finder's Options. Each Finder's Option is exercisable into one Unit (on a non-flow-through basis) of the Corporation (on the same terms and conditions as those received by the subscribers under this Offering).
The proceeds will be used for drilling new wells, completion and tie-ins of recently drilled wells and for seismic activities.
All of the Flow-Through Shares, Common Shares and Warrants issued pursuant to the private placement are subject to a 4-month hold period. Completion of the private placement is subject to the final approval of the TSX Venture Exchange.
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.
If you would like to receive press releases via email please contact [email protected]. Please specify "
Emerald Bay
press releases" in the subject line.
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.
%SEDAR: 00008937E
For further information: Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at [email protected], or CHF Investor Relations: Catarina Cerqueira, Associate Account Manager, (416) 868-1079 x251, [email protected]; Robin Cook, Senior Account Manager, (416) 868-1079 x228, [email protected]
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