Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

September 20, 2011 12:38 ET

Canoel Announces the Closing of a Private Placement of Convertible Notes

CALGARY, ALBERTA--(Marketwire - Sept. 20, 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 Swiss Francs ("Sfr") of up to an aggregate of Sfr3,000,000 (approximately CDN$3,668,400) through a non-brokered private placement of convertible notes ("Notes") at a price of Sfr10,000 per Note. Each Note shall bear interest at a simple (uncompounded) rate of 9% per annum, payable in arrears in equal quarterly installments commencing 90 days 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$0.20 per share at any time prior to maturity. A finder's fee of up to 8% of the gross proceeds of the private placement may be paid by Canoel. A Price Reservation Form 4A was filed with the TSX Venture Exchange on August 31, 2011. Conditional approval for the proposed transaction was received from the TSX Venture Exchange on September 19, 2011. It is anticipated that the offering will close on or about October 14, 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.

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