CALGARY, Alberta, Dec. 13, 2023 (GLOBE NEWSWIRE) —
CanAsia Energy Corp. (“CanAsia” or the “Company”) (CEC – TSXV) is pleased to announce that, in connection with its previously announced brokered private placement offering on December 4, 2023 (“Offering”), the Company has upsized the Offering from CAD $4.0 million to up to CAD $6.3 million in common shares of the Company (“Shares”) at an issue price of CAD $0.10 per Share. The Offering is being led by Research Capital Corporation as the sole agent and sole bookrunner (the “Agent”) on a “best-efforts” basis. As a result of the upsized Offering, the previously announced Agent’s Option to increase the size of the Offering by up CAD $0.6 million no longer applies.
As previously announced, CanAsia officers and directors have advised CanAsia of their intention to participate in the Offering by purchasing Accredited Investor Shares (as defined below) alongside investors in the Offering.
CanAsia intends to use the net proceeds from the Offering, combined with CanAsia’s previously available working capital, primarily for international new ventures focused initially on Thailand, and general corporate purposes.
It is anticipated that an onshore Thailand licensing round will be announced within the first quarter of 2024. CanAsia intends to participate as part of a consortium alongside a strategic partnership with a leading integrated resource and technical service provider to the energy sector, with upstream to downstream operations, which the Company’s management team has previously established a strong relationship. No assurance can be given that a CanAsia bid will be successful.
The closing of the Offering is expected to occur on or about December 20, 2023 (the “Closing Date“), or such other date or dates as CanAsia and the Agent may agree. The outstanding CanAsia Shares are listed and posted for trading on the TSX Venture Exchange (the “TSXV“) under the trading symbol “CEC”. CanAsia will apply to list the shares distributed under the Offering on the TSXV. Listing will be subject to CanAsia fulfilling all the listing requirements of the TSXV.
Pursuant to the Offering, 24,000,000 Shares (“LIFE Shares”) will be offered to purchasers in Canada (other than in Québec) under the listed issuer financing exemption and up to 39,000,000 Shares (“Accredited Investor Shares“) will be offered to accredited investors under the accredited investor exemption. An amended and restated offering document relating to the LIFE Shares will be filed by CanAsia and available under CanAsia’s profile at www.sedarplus.ca and CanAsia’s website, at www.canasiacorp.com. Prospective purchasers of LIFE Shares should read the amended and restated offering document before making an investment decision. The first trade of LIFE Shares will not be subject to any hold period or other resale restrictions (subject to limited exceptions). Unless permitted under securities legislation, the Accredited Investor Shares cannot be traded before 4 months and a day after the Closing Date.
CanAsia will pay to the Agent a cash commission of 6.0% of the aggregate gross proceeds of the Offering, other than for sales to certain “president’s list” purchasers identified by CanAsia, for which a 3.0% cash commission will be payable. CanAsia will also issue to the Agent non-transferable broker warrants equal to 6.0% of the number of Shares sold under the Offering, other than Shares sold to president’s list purchasers. Each broker warrant will entitle the Agent to purchase one Share at an exercise price of CAD $0.10 until 24 months after the Closing Date. The underlying Accredited Investor Shares of the broker warrants cannot be traded before 4 months and a day after the Closing Date.
CanAsia is a Calgary, Alberta based oil and gas company with operations in Western Canada. CanAsia continues to consider international oil and gas concessions, including Thailand. CanAsia’s management and directors have almost 20 years of oil exploration and development experience in Thailand through CanAsia’s predecessor company Pan Orient Energy Corp.