CALGARY, ALBERTA–(Marketwired – May 4, 2016) – Traverse Energy Ltd. (“Traverse“) (TSX VENTURE:TVL) is pleased to announce that it has entered into an agreement with Acumen Capital Finance Partners Limited (“Acumen” or the “Agent”), pursuant to which the Agent has agreed to offer for sale, on a “reasonable commercial efforts”, agency basis, a treasury offering of up to 2,533,333 common shares of Traverse issued as “flow-through shares” under the Income Tax Act (Canada) (the “Tax Act”) with respect to “Canadian exploration expense” (the “CEE FT Shares”) at a price of $0.45 per CEE FT Share and up to 4,650,000 common shares of Traverse issued as “flow-through shares” under the Tax Act with respect to “Canadian development expenses” (the “CDE FT Shares”) at a price of $0.40 per CDE FT Share for aggregate gross proceeds of $3,000,000 (the “Offering”).
The closing of the Offering is expected to occur on or about May 27, 2016, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All CEE FT Shares and CDE FT Shares issued under the Offering will be subject to a statutory four month hold period.
Traverse intends to use the proceeds from the Offering to fund qualifying expenditures under the Tax Act on the company’s oil and gas properties.
About the Corporation
Traverse is a junior oil and natural gas exploration and production company in Alberta. The common shares of the Corporation currently are listed on the TSX Venture Exchange under the trading symbol “TVL”.