Traxion Energy Inc.
TSX VENTURE : TXE

Traxion Energy Inc.

April 15, 2010 19:05 ET

Traxion Increases Financing to $7,500,000

CALGARY, ALBERTA--(Marketwire - April 15, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Traxion Energy Inc. ("Traxion" or the "Corporation") (TSX VENTURE:TXE) is pleased to announce that its previously announced financings on April 13, 2010 are expected to be oversubscribed. With Mackie Research Capital Corporation (the "Agent") acting as agent, the Corporation now intends to issue up to 8,333,334 units ("Units") at a price of $0.18 per Unit and up to 17,500,000 common shares on a "flow-through basis" ("Flow-Through Shares") at a price of $0.20 per Flow-Through Share for aggregate gross proceeds to the Corporation of up to $5,000,000 (the "Brokered Private Placement"). The number of Flow-Through Shares expected to be issued has increased by 2,500,000 from the April 13, 2010 announcement.

Each Unit shall consist of one common share of the Corporation ("Common Share") and one half of one Common Share purchase warrant ("Warrant") with each whole Warrant entitling the holder thereof to purchase one Common Share at a price of $0.25 per Common Share at any time during the period of 12 months from the Closing Date.

The Agent will be paid a commission of 7% on the gross proceeds raised under the Brokered Private Placement and will be reimbursed for its expenses. The Agent will also receive non-transferrable agent's options entitling the holder to acquire up to 8% of that number of shares issued under the Brokered Private Placement exercisable at $0.20 per share for a period of 12 months following closing. The offering is scheduled to close on or about May 4, 2010 (the "Closing Date") and is subject to normal approvals by the TSX Venture Exchange.

Also, concurrent with the Brokered Private Placement, the Corporation now intends to issue up to 13,888,889 Units or Flow-Through Shares or combination thereof by way of a non-brokered private placement, for gross proceeds to the Corporation of up to $2,500,000 (the "Non-Brokered Private Placement"). This represents an increase of 2,777,778 Units or Flow-Through Shares over the April 13, 2010 announcement. No new control persons will be created as a result of this private placement. The Corporation may pay a finder's fee of up to 7% cash commission and Warrants entitling the holder to acquire up to 8% of that number of shares sold by arm's length parties who assist with the placement of shares. This offering is scheduled to close on or about May 4, 2010 and is subject to normal approvals by the TSX Venture Exchange.

The majority of the proceeds from the Brokered Private Placement and the Non-Brokered Private Placement will be used to further evaluate the recently purchased lands containing the prospective Nordegg resource in west central Alberta by drilling, coring and logging a number of wells on Traxion property. The remainder will be used for general corporate purposes and to increase production on its SW Saskatchewan oil bearing properties.

Traxion Energy Inc. is a Calgary, Alberta based Corporation engaged in the exploration, development and production of hydrocarbons with a focus on oil. The Corporation's common shares are listed on the TSX Venture Exchange under the trading symbol "TXE".

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained herein constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Except as required by law, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provide (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

  • Traxion Energy Inc.
    James R. Ehret
    President
    403-508-9961
    403-508-9395 (FAX)
    jehret@traxion.ca