Azabache Energy Inc.

Azabache Energy Inc.

April 08, 2011 11:57 ET

Azabache Announces Warrant Exercises

CALGARY, ALBERTA--(Marketwire - April 8, 2011) -


Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces that outstanding share purchase warrants, broker warrants and broker options (collectively, the "Warrants") to purchase an aggregate of 5,986,502 common shares have been exercised for aggregate proceeds of $2,640,505. The Warrants were granted on September 11 and 18, 2009 and May 20 and August 19, 2010 pursuant to two multi-tranche private placements of the Company.

The Company intends to use the proceeds from the Warrants as general working capital. The Company now has an aggregate of 81,958,757 common shares issued and outstanding. As a result of the exercises of broker options, an additional 244,476 warrants were issued. Outstanding warrants as at March 31, 2011 are as follows:

Month of expiryNumberExercise Price
November 2011477,415$0.21
February 2012169,093$0.21
May 20128,230,647$0.30
August 20121,963,962$0.30
January 20139,821,429$0.40
January 20131,071,429$0.28
Balance at March 31, 201121,733,975

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the Warrant exercises. Although the Company believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the net proceeds of the Warrant exercises by Azabache might change if the board of directors of Azabache determines that it would be in the best interests of the Company to deploy the proceeds for some other purpose, such as an acquisition. The forward-looking statements contained in this document are made as of the date hereof and Azabache undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.

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