CALGARY, ALBERTA–(Marketwired – Dec. 12, 2014) – CaiTerra International Energy Corporation (TSX VENTURE:CTI) (the “Company“) announces that it intends to complete a non-brokered private placement of: (i) up to 17,500,000 common shares Company (“Common Shares“) at a price of $0.20 per Common Share; and (ii) up to 6,000,000 common shares of the Company issued on a “flow-through” basis pursuant to the Income Tax Act (Canada) with respect to Canadian exploration expense (“Flow-Through Shares“) at a price of $0.25 per Flow-Through Share (collectively, the “Private Placement“), for aggregate gross proceeds of up to $5.0 million. The Company may pay a cash finder’s fee of up to $350,000, representing up to 7% of the gross proceeds raised in the Private Placement.
The net proceeds from the sale of the Flow-Through Shares will be used to fund the Company’s exploration program in northern Alberta which qualify as “Canadian Exploration Expenses”, within the meaning of the Income Tax Act (Canada). The net proceeds from the sale of the Common Shares will be used to fund the Company’s other exploration expenses and for general corporate purposes.
The Private Placement is subject to customary conditions and the receipt of required regulatory approvals, including the approval of the TSX Venture Exchange. The Common Shares and the Flow-Through Shares issuable pursuant to the Private Placement will be subject to a four-month hold period under applicable Canadian securities laws.
The private placement announced October 30, 2014 involving the issuance of up to 15,000,000 common shares and 5,000,000 flow-through shares at a price of $0.25 and $0.30 per share respectively, will not proceed.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States, nor shall there be any sale of the Common Shares or Flow- Through Shares in any jurisdiction in which such offer, solicitation or sale may be unlawful. The Common Shares and the Flow-Through Shares have not been and will not be registered under the 1933 Act or any U.S. state securities laws and may not be offered or sold in the United States absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act and applicable U.S. state securities laws.
CaiTerra International Energy Corporation
Chief Executive Officer