VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 4, 2014) - Cobra Venture Corporation (the "Corporation") (TSX VENTURE:CBV) is pleased to announce that it has entered into an offer to purchase and interim agreement (the "Offer to Purchase") between the Corporation, as vendor, and an arm's length private Alberta corporation (the "Purchaser") related to the proposed sale and purchase of certain undeveloped lands located in the Municipal District of Rocky View No. 44, in the Province of Alberta, consisting or approximately 12.84 acres, more or less, excepting thereout all mines and minerals (the "Lands"), for an aggregate cash purchase price of four million three hundred and sixty-five thousand ($4,365,600) dollars (the "Purchase Price"). The Corporation intends to retain ownership to approximately three (3) acres, more or less, of the 15.78 acres of undeveloped land originally acquired by the Corporation, in October, 2012.
Pursuant the terms of the Offer to Purchase, the Corporation has received a fifty thousand ($50,000) dollar refundable deposit in trust, which shall be applied to the Purchase Price upon closing of the transaction (the "Closing"). The Corporation is also entitled to receive a further two hundred thousand ($200,000) dollars, in trust, within two (2) business days of the waiver or satisfaction of all conditions precedent contained in the Offer to Purchase, with the balance of four million one hundred and fifteen thousand six hundred ($4,115,600) dollars payable on the closing date.
Closing is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange Inc., as well as usual due diligence inspections of the Lands by the Purchaser, review by the Purchaser of all title documentation related to the Lands and the Purchaser obtaining suitable mortgage financing to complete the transaction on or before sixty (60) days from the date the Corporation receives board approval for the transaction.
Subject to compliance or waiver with all conditions precedent set forth in the Offer to Purchase, it is anticipated that the transaction will close during the first week of July, 2014.
Subject to completion of the transaction, the Corporation shall be responsible for the payment of a real estate commission of one and one half (1.5%) percent of the Purchase Price, plus GST to an arm's length commercial real estate agent situated in Calgary, Alberta.
Management of the Corporation believes that the Lands no longer represent any strategic value to the core business of the Corporation and further represents a reasonable return on investment to the Corporation over the sixteen (16) month period the Lands were held by the Corporation. Proceeds from the sale of the Lands will be added to the general working capital of the Corporation.
About Cobra Venture Corporation
Cobra Venture Corporation is an emerging energy corporation focused on the acquisition and development of strategic oil and natural gas reserves in Western Canada. Common shares of the corporation trade on the TSX Venture Exchange Inc. under the symbol CBV.
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.
This press release contains "forward looking statements" within the meaning of applicable Canadian securities legislation. The words "could", "plan", "expect", "estimate", "anticipate", "project", "predict", "intend", "may", "potential", "believe" and similar expressions and variations thereof are forward-looking statements. These include, but are not limited to, statements respecting anticipated business activities, the timing of the payment of the second deposit and the balance of the Purchase Price, the acceptance of the transaction by the TSX Venture Exchange Inc., the timing and completion or waiver of various conditions precedent to completion of the transaction and the occurrence of Closing and any other statements that are not historical facts. Statements in this release that are forward-looking statements are subject to various risks and uncertainties including, but not limited to, the ability to obtain regulatory body approval in respect of the transaction, the ability of the Purchaser to finance and pay the balance of the Purchase Price, and the ability of all parties to complete the Closing in a timely manner or at all and such specific factors disclosed under the heading "Risk Factors" in the Corporation's periodic filings with Canadian securities regulators. Although the Corporation believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The reader is cautioned not to place undue reliance on forward-looking statements. The Corporation undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this release. You should carefully review the cautionary statements and risk factors contained herein and in the documents that we file from time to time with the Canadian securities regulators.