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CALGARY, July 18, 2012 /CNW/ - Raise Production Inc. (TSXV: RPC)
("Raise" or the "Company") announces it has entered into an engagement
letter with Macquarie Private Wealth Inc. (the "Agent") for a private
placement of units of the Company.
Subject to regulatory approval, the Company intends to proceed with a
private placement of 23,333,333 units at a price of $0.15 per unit for
aggregate gross proceeds of up to $3,500,000 (the "Private Placement").
Each unit (a "Unit") will consist of one common share and one common
share purchase warrant (a "Warrant"). Each Warrant shall be exercisable
for an 18 month period from date of issue at a price of $0.225.
The Agent shall be entitled to receive a cash commission of 7% on the
gross proceeds raised under the Private Placement. The Company will
also issue agent's options to the Agent and its designated sub-agents,
if any, in a number equal to 7% of the number of Units issued under the
private placement (the "Agent's Options"). Each Agent's Option shall be
exercisable for a period of 18 months from the closing of the private
placement at a price of $0.15 per unit. Each Agent's Option is
exercisable for one Unit.
The Units are expected to be offered through the Agents to "accredited
investors" within the meaning of National Instrument 45-106, or such
other qualified persons as may be determined by the Agent and Raise. It
is expected that insiders of the Company will be participating in the
The closing of the Private Placement is conditional upon, among other
things, completion of satisfactory due diligence by the Agent and
approval of the TSX Venture Exchange Inc.
All of the securities issued pursuant to the Private Placement will be
subject to a four month hold period from the date of issuance.
The proceeds received by the Company from the Offering will be used for
commercialization, development, and working capital.
About Raise Production Inc.
The Company is an innovative oilfield service company that focuses its
efforts on the production service sector, the production services
segment utilizes its patented products to enhance and increase ultimate
production in both conventional and unconventional gas, oil, and CBM
wells. The Company was founded in 1994 and is listed on the TSX Venture
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any state in the United States in which such
offer, solicitation or sale would be unlawful. The securities referred
to herein have not been and will not be registered under the United
States Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable
exemption from registration requirements.
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 news
This news release may contain forward-looking statements, including
statements regarding the Private Placement and the use of proceeds from
the Private Placement and other statements that are not historical
facts. Forward-looking statements address future events and conditions
and therefore, involve inherent risks and uncertainties. Actual results
may differ materially from those currently anticipated in such
statements. Such information is subject to known and unknown risks,
uncertainties and other factors that could influence actual results or
events and cause actual results or events to differ materially from
those stated, anticipated or implied in the forward-looking
information. Readers are cautioned not to place undue reliance on
forward-looking information, as no assurances can be given as to future
results, levels of activity or achievements.
SOURCE Raise Production Inc.
For further information:
Eric Laing, President and Chief Executive Officer
Raise Production Inc.
Suite 1810, 715 - 5th Ave S.W.
Calgary, Alberta T2P 2X6
Tel: (403) 699-7675
Web site at: www.raiseproduction.com