CALGARY, ALBERTA--(Marketwire - Nov. 15, 2012) -
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Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL) is pleased to announce, subject to regulatory approval, the completion of the first tranche of a non-brokered private placement of units ("Units"). Canoel issued an aggregate of 2,948,999 Units in this first tranche at a price of $0.06 per Unit for gross proceeds of approximately $176,940.
Each Unit consists of one common share in the capital of Canoel and one common share purchase warrant. Each common share purchase warrant entitles the holder thereof to purchase, subject to adjustment, one additional common share at an exercise price of $0.10 per share at any time on or before the date that is 24 months from the date of issuance of the common share purchase warrant.
An insider of the Company participated in this tranche of the private placement as follows: Tonsenhagen Forretningssentrum AS, a related party of Erik Larre who is a director of the Company, purchased 833,333 Units for approximately $50,000. The issuance of Units to Tonsenhagen Forretningssentrum AS pursuant to the private placement is considered to be a related party transaction subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. Canoel is relying on the exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that participation in the private placement by Tonsenhagen Forretningssentrum AS did not exceed 25% of the fair market value of the Company's market capitalization.
Unless permitted under securities legislation, the holders of these securities must not trade the security before March 14, 2013.
The proceeds from this offering will be used to finance the Company's operations and to augment its unallocated working capital. This transaction is subject to the submission of final documentation and final approval of the TSX Venture Exchange.
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.