/NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES./
CALGARY, Oct. 4, 2012 /CNW/ - Valparaiso Energy Inc. (the "Corporation") (VPO.H) is pleased to announce that the previously announced shares for debt and private placement transactions, both closed on March 2, 2012 have been approved by NEX. Pursuant to the shares for debt transaction, 9,468,703 common shares at a deemed price of $0.05 per share were issued to holders of promissory notes to extinguish outstanding debt of the Corporation in the amount of $473,435. Insiders received a total of 9,238,811 of the shares in this transaction.
Pursuant to the private placement 4,800,000 common shares of the Corporation and 4,800,000 share purchase warrants were issued for cash proceeds of $240,000. Each warrant entitles the holders thereof to purchase an additional common share for a period of twelve (12) months from the closing date at a price of $0.10 per common share. Both the common shares, and any shares issued pursuant to the exercise of warrants, are subject to a four month hold period. Insiders subscribed for securities in the aggregate of $125,000 in the private placement transaction.
The above described transactions also resulted in Kathleen E. Mackenzie becoming a Control Person of the Corporation as that term is defined in the policies of the TSX Venture Exchange. The status of Ms. Mackenzie as Control Person was approved by the Corporation's disinterested shareholders at its annual general and special meeting held on September 14, 2012. Ms. Mackenzie currently owns or controls 32.2% of the Corporation's issued and outstanding common shares.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
This news release may contain certain forward-looking statements that reflect the current views and/or expectations of Valparaiso Energy Inc., with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Specifically, certain of the transactions referenced herein are subject to regulatory approval, and there can be no guarantee that such approvals will be received, in a timely manner or at all. Actual results and events may vary.
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 of this release.
SOURCE: Valparaiso Energy Inc.
For further information:
William J. Wylie
Valparaiso Energy Inc.
T: 403.266.5515 (Ext.4)