TransAmerican Energy Inc.
TSX VENTURE : TAE
FRANKFURT : YQJ

TransAmerican Energy Inc.

October 06, 2009 14:25 ET

TransAmerican Energy Inc. Private Placement: $400,000

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2009) - TransAmerican Energy Inc. (TSX VENTURE:TAE)(FRANKFURT:YQJ) (the "Company" or "TransAmerican") announces that it has negotiated, subject to acceptance by the Exchange, a private placement for gross proceeds of up to $400,000. These funds will be raised by the Company issuing a total of up to 8,000,000 Units (the "Units") at a price of $0.05 per Unit, each Unit consisting of one common share and one-half share purchase warrant, each whole warrant entitling the holder thereof to purchase one additional common share, exercisable for a period of one year from the date of issuance at a price of $0.10 per share.

Proceeds raised from the private placement will be used for general working capital purposes.

The Company may pay finders' fees in connection with the private placement in accordance with the rules and policies of the Exchange.

Certain of the directors and/or officers of the Company may together directly and indirectly subscribe for a total of up to 1,000,000 Units, and upon closing of this private placement, those related parties may therefore acquire up to an additional 1,000,000 shares in the capital stock of the Company which will increase their pro rata shareholdings in the Company (the "Related Party Transaction"). All of the independent directors of the Company, acting in good faith, have determined that the fair market value of the securities being issued and the consideration paid is reasonable and, with the value of the Related Party Transaction being less than 25% of the Company's market capitalization, is exempt from the formal valuation and minority shareholder approval requirements of the Ontario Securities Commission's Rule 61-501.

ON BEHALF OF THE BOARD

Jurgen Wolf, director

Neither the 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.

Contact Information

  • TransAmerican Energy Inc.
    Jurgen Wolf
    Director
    (604) 718-2800
    (604) 718-2808 (FAX)