CALGARY, AB – Tenth Avenue Petroleum Corp. (“TPC” or the “Company”) (TSXV:TPC) is pleased to announce a non-brokered private placement offering of up to 12,000,000 units (each a “Unit“) at a price of CDN $0.25 per Unit for aggregate gross proceeds of up to CDN$3,000,000 (the “Financing“). Each Unit will consist of one common share of the Company (a “Common Share“) and one-half of one common share purchase warrant (a “Warrant“). Each whole Warrant issued under the Financing will entitle the holder to acquire one additional Common Share at a price of $0.30 for a period of 12 months from the date of issuance. The Warrants will include an acceleration clause to the effect that if at any time the daily volume weighted average closing price of the Common Shares on the TSX Venture Exchange is $0.35 or more for a period of twenty (20) consecutive days, the Company will be entitled to notify all holders of Warrants of its intention to force the exercise of the Warrants and to issue a press release to such effect, following which the holders of Warrants shall have thirty (30) days from the date of the press release to exercise the Warrants. All of the Common Shares and Warrants issued in connection with this financing will be subject to a statutory four-month hold period in accordance with applicable securities laws. The proceeds raised under this financing are expected to be used for the closing of the recently announced Avalon property purchase, exploration and development and for general working capital purposes.
The Company reserves the ability to pay a finder fee of up to 7% of the gross proceeds of the financing. Closing of this private placement is subject to receipt of approval from the TSX Venture Exchange.
Cameron MacDonald, Tenth Avenue President and Chief Executive Officer. “This financing will help close our transformative acquisition and provide the working capital necessary to complete our capital expenditure work programs in southern Alberta. This will enable us to increase our oil production base, increase our cash flows while focusing on highest-return assets.”
The securities to be offered pursuant to the offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
For further information:
Cameron MacDonald, President & CEO
Tenth Avenue Petroleum Corp.