Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

July 11, 2011 08:15 ET

Canoel Announces Private Placement

CALGARY, ALBERTA--(Marketwire - July 11, 2011) -

THIS PRESS RELEASE IS NOT TO BE DISTRIBUTED TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL) proposes to raise funds in Norwegian Kroner ("NOK") of up to an aggregate of NOK 12,000,000 (approximately CAD 2,110,000) through a non-brokered private placement of convertible notes (the "Notes") at a price of NOK 30,000 per Note. Each Note shall bear interest at a simple (uncompounded) rate of 12% per annum, payable in arrears in equal quarterly installments commencing the month after the Notes are issued and ending 36 months after issue. At the option of the holder of the Notes, the principal and any unpaid interest of a note may be converted into common shares of Canoel at a price of CDN$0.15 per share.

A Price Reservation Form 4A was filed with the TSX Venture Exchange on June 13, 2011 to secure the common share conversion price of CDN$0.15 per share. Conditional approval for the proposed transaction was received from the TSX Venture Exchange on June 17, 2011. It is anticipated that the offering will close on July 15, 2011.

The proceeds from the proposed offering will be used to finance Canoel's acquisitions campaign 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.

Forward-looking Information

Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target", and "expect" or similar words suggest future outcomes.

Forward-looking information in this press release includes, among other things, information relating to: (a) the Company will raise up to NOK$ 12,000,000; and (b) the use of proceeds as of the closing date of the private placement. These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate.

Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company's expectations.

Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Except as required by law, the Company disclaims any intention and assumes no obligation to update any forward-looking statement.

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.

Contact Information

  • Canoel International Energy Ltd.
    Jose Ramon Lopez Portillo
    Chairman of the Board
    (403) 938-8154
    (403) 775-4474 (FAX)

    Canoel International Energy Ltd.
    Andrea Cattaneo
    CEO & President
    (403) 938-8154
    (403) 775-4474 (FAX)
    info@canoelenergy.com