SOURCE: Canadian Overseas Petroleum Ltd

May 04, 2016 02:27 ET

Canadian Overseas Petroleum Ltd: Closing of Brokered Portion of Private Placement

CALGARY, AB--(Marketwired - May 4, 2016) - Canadian Overseas Petroleum Ltd (TSX VENTURE: XOP) (LSE: COPL)

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Canadian Overseas Petroleum Limited Announces
 Closing of Brokered Portion of Private Placement
and
Appointment of Broker to LSE Main Market

Calgary, Canada, May 3, 2016 - Canadian Overseas Petroleum Limited (the "Company") (TSX-V: XOP) (LSE: COPL) is pleased to announce that it has closed the brokered portion of its previously announced private placement of units of the Company ("Units") through Dundee Securities Ltd. (the "Agent"). The Company issued 100,866,868 Units at a price of $0.07 per Unit for aggregate gross proceeds of approximately $7.1 million (the "Brokered Offering"). Each Unit consists of one common share in the capital of the Company ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share at a price of $0.095 per Common Share at any time prior to 4:30 p.m. (Calgary time) on the date that is 24 months from the closing date of the Brokered Offering.

The Company has raised aggregate gross proceeds of approximately $8.6 million pursuant to the Brokered Offering and the non-brokered private placement completed on April 28, 2016 (collectively, the "Offering"). Certain directors, officers and employees of the Company participated in the Brokered Offering purchasing in aggregate of 13,813,440 Units for aggregate gross proceeds of approximately $1.0 million.

In connection with the Brokered Offering, the Company paid a commission to the Agent and certain sub-agents of 6% of the gross proceeds of the Brokered Offering, excluding proceeds in respect of sales to certain president's list subscribers. The Company also issued to the Agent and certain sub-agents an aggregate of 5,233,206 warrants ("Broker Warrants"), each Broker Warrant entitling the holder to purchase one Unit at an exercise price of $0.07 per Unit for a period of 24 months following the closing date of the Brokered Offering.

Please click on the associated PDF document to view the full announcement:
 http://www.rns-pdf.londonstockexchange.com/rns/1437X_1-2016-5-3.pdf

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