Quetzal Energy Ltd.

Quetzal Energy Ltd.

October 26, 2009 16:48 ET

Quetzal Energy Ltd. Announces Closing of First Tranche of Private Placement

TORONTO, CANADA--(Marketwire - Oct. 26, 2009) -


Quetzal Energy Ltd. (TSX VENTURE:QEI) ("Quetzal" or the "Company") is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement financing, pursuant to which it has issued an aggregate of 39,673,000 units ("Units") at a price of $0.125 per Unit to raise aggregate gross proceeds of $4,959,125. Each Unit consists of one common share of Quetzal and one share purchase warrant (a "Warrant"), each Warrant entitling the holder to acquire one additional common share of Quetzal until October 26, 2011 at an exercise price of $0.20 per share. All securities issued in connection with the first tranche of the financing are subject to a statutory hold period expiring on February 27, 2009.

In connection with the first tranche closing, Quetzal has paid finder's fees in the aggregate amount of approximately $236,250 to certain qualified registrants assisting in the offering (representing 7% of the gross proceeds raised by such finders), and issued an aggregate of 2,160,000 compensation warrants ("Compensation Warrants") to such finders (representing 8% of the aggregate number of Units sold by such finders). Each Compensation Warrant entitles the holder to acquire one common share of Quetzal at an exercise price of $0.125 per share until October 26, 2011. 

The private placement remains subject to the final approval of the TSX Venture Exchange. 

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Quetzal, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas activities, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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