VANCOUVER, Nov. 20, 2018 /CNW/ - Oronova Energy Inc. ("Oronova" or the "Company") (TSX.V: ONV) is pleased to report that pursuant to its agreement with Advantage Energy Services Ltd. ("Advantage") (as announced on September 17, 2018) (the "Advantage Agreement"), Advantage has confirmed that its affiliated company, 2136983 Alberta Ltd. ("2136983") has entered into a joint venture and operating revenue sharing agreement dated November 17, 2018 with a third party company (the "JV Agreement") whereby 2136983 will acquire, subject to financing and director's approval, an undivided 50% working interest in certain producing and non-producing oil and gas assets and certain oil and gas plant and facility assets in the Province of Alberta. Pursuant to the JV Agreement, in order to acquire its undivided 50% working interest, 2136983 must invest $4 million as an initial joint venture contribution.
Pursuant to the Advantage Agreement, the parties intend that upon closing of the transaction Oronova will acquire all of the issued and outstanding shares of 2136983 from Advantage in exchange for 10 million common shares of the Company and that members of the Advantage professional oil and gas team will become the officers, directors and management of Oronova. It is intended that the acquisition by 2136983 of its initial 50% joint venture interest, and the closing of the acquisition of all of the outstanding shares of 2136983 by the Company will occur concurrently, subject to completion of financing, approval of the TSX Venture Exchange, negotiation of definitive documentation and receipt of any required director or shareholder approvals.
In connection with the proposed acquisition, the Company announces its intention to raise up to $6MM by way of a non-brokered private placement of up to 30,000,000 units. Each unit will be priced at $0.20 and will consist of one common share and one-half share purchase warrant. Each full warrant will entitle the warrant holder to purchase one common share of the Company for two (2) years at an exercise price of $0.30 subject to accelerated expiry in the event the Company's common shares trade at or above $0.45 for a period of 10 consecutive trading days after expiry of the four month hold period. The Company may pay a finder's fee to qualified persons in regard to the proposed financing. Proceeds from the financing will be used to fund acquisitions and for general working capital purposes.
On behalf of the Board of Oronova Energy Inc.
Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved nor disapproved the information contained herein.
Forward Looking Statements
This news release contains forward looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward Looking Statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of the Corporation, are forward looking statements that involve risk and uncertainties, There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Corporation's expectations are exploration risks detailed from time to time in the filings made by the Corporation within the securities regulations.
The reader is cautioned that assumptions used in the preparation of any forward looking statements/information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known or and unknown risks, uncertainties and other factors many of which are beyond the control of the Corporation. As a result we cannot guarantee that any forward looking statement will materialize and the reader is cautioned not to place any undue reliance on any forward looking statements/information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward looking statements contained in this News release are made as of the date of the release and the Corporation does not undertaken any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.
SOURCE Oronova Energy Inc.
For further information: Joanna Vastardis, CFO & Corporate Secretary, Tel: (604) 609-6125