VANCOUVER, B.C. – TheNewswire – January 18, 2021 – Hillcrest Petroleum Ltd. (the “Company” or “Hillcrest”) (TSXV:HRH) (OTC:HLRTF), announces that it has closed a non-brokered private placement of up 25,340,000 units of the Company (the “Units”) at a price of $0.05 per Unit for gross proceeds of up to $1,267,000 (the “Offering”). Each unit consists of one common share (a “Share”) and one share purchase warrant (the “Warrant”). Each Warrant will be exercisable into an additional common share of the Company at a price of $0.10 per share for a period of two years.
The subscribers to the Offering include an officer who subscribed for 1,500,000 Units. The issuance of Shares to this offer constitutes a “related party transaction” as this term is defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”). The Company is relying on the exemption from valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, as the securities do not represent more than 25% of the Company’s market capitalization, as determined in accordance with MI 61-101.
The Company intends to use the proceeds of the Offering for well maintenance on the Company’s existing wells, preparation for the drilling of a new well, retirement or reduction of payables, the payment of provincial royalties related to its oil and gas operations, and further development of the Company’s energy portfolio through the establishment of a local energy laboratory, as well as for general working capital purposes.
The Company paid eligible finders a cash commission in the aggregate amount of $33,760 and issued an aggregate of 675,200 non-transferable finder’s warrants (the “Finder’s Warrants”). Each Finder’s Warrant entitles the holder to purchase one additional Share at a price of $0.10 per Share for a period of two years from the closing of the Offering.