CALGARY, ALBERTA–(Marketwired – Nov. 28, 2016) – Traverse Energy Ltd. (the “Corporation“) (TSX VENTURE:TVL) reports that due to the oversubscription of its previously announced non-brokered private placement, the Corporation is increasing the size of its private placement and will now issue up to 8 million common shares for total gross proceeds of $3,536,000.
Of the total number of common shares to be issued by the Corporation (i) up to 2.4 million common shares will be issued at $0.40 per share (“Common Shares“); and (ii) up to 5.6 million common shares will be issued on a “flow-through” basis eligible for the renunciation of Canadian exploration expenses within the meaning of the Income Tax Act (Canada) at $0.46 per share (“Flow-Through Shares“). In addition, the Corporation will pay a finder’s fee on a portion of the Private Placement consisting of a cash payment equal to 6% of the gross proceeds raised from certain subscriptions.
Completion of the Private Placement is subject to certain conditions including, but not limited to, the receipt of the approval of the TSX Venture Exchange.
The Corporation intends to use the proceeds from the issuance of the Flow-Through Shares to fund a portion of its exploration activities in the province of Alberta and from the issuance of the Common Shares for general corporate purposes.
About the Corporation
The Corporation is a junior oil and natural gas exploration and production company. The common shares of the Corporation are currently listed on the TSX Venture Exchange under the trading symbol “TVL”. Upon the completion of the Private Placement, there will be 86,644,402 common shares issued and outstanding.