| ||Mon Jul 25, 2011|
Pennant Energy Announces Closing of Private Placement Financings of $1.1 Million
| ||NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES|
Vancouver, B.C., July 25, 2011, -- Pennant Energy Inc. (the "Company") (TSX Venture: PEN) is pleased to announce the closing of the brokered private placement through Canaccord Genuity Corp (the "Agent"), and a non brokered private placement (collectively the "Offering"), as originally announced on July 4, 2011. The Company obtained conditional approval from the TSX Venture Exchange for the Offering on July 15, 2011.
The brokered portion of the Offering consisted of the sale of 5,478,294 flow-through shares of the Company (the "FT Shares") at a price of $0.17 per FT Share and 972,000 units of the Company (the "Units") at a price of $0.17 per Unit for total gross proceeds $1,096,549.98.
Each Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable into one common share of the Company for a period of 24 months from closing at an exercise price of C$0.22.
The Company paid the Agent a cash fee equal to 7% of the gross proceeds raised from the brokered private placement and issued to the Agent warrants (the "Agent's Warrants") equal to 7% of the aggregate number of Units and FT Shares sold. Each Agent's Warrant is exercisable into one common share of the Company for a period of 24 months from closing at an exercise price of $0.17. In addition, the Company issued 147,059 Units as a corporate finance fee to the Agent.
The non-brokered portion of the Offering consisted of the sale of 177,000 FT Shares for total gross proceeds of $30,090. A finder's fee of $702.10 was paid in accordance with the policy of the Exchange.
The funds raised from the issuance of the FT Shares shall be used for general exploration expenditures which will qualify as expenses under paragraph 66 (12.66) (b) of the Income Tax Act (Canada) on the Company's Bigstone Project located NW of Edmonton, Alberta in accordance with the provisions of the Company's earn-in agreement with Donnybrook Energy Inc. Funds raised from the issuance of Units will be for general working capital.
The securities issued will be subject to a four month hold period expiring November 26, 2011.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or the securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements
On behalf of the Board of Directors of
PENNANT ENERGY INC.
Signed: Thomas Yingling
Thomas Yingling, President
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of the oil and gas properties, the interpretation of results and other data; project cost overruns or unanticipated costs and expenses, currency fluctuations; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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.
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