Knol Resources Corp.
TSX VENTURE : NOL

Knol Resources Corp.

April 15, 2014 19:40 ET

Knol Resources Corp. Announces Completion of $5 Million Private Placement Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 15, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Knol Resources Corp., (the "Corporation") (TSX VENTURE:NOL) is pleased to announce that it has closed the second tranche of its previously announced non-brokered private placement offering, which tranche consisted of 3,000,000 units of the Corporation ("Units") at a purchase price of $0.10 per Unit for total gross proceeds of $300,000. Each Unit consisted of one common share in the capital of the Corporation ("Common Share") and one non-transferable Common Share purchase warrant of the Corporation ("Warrant"). Each Warrant will be exercisable into one Common Share at a price of $0.20 until April 11, 2019, subject to acceleration in certain circumstances. The closing of this second tranche completes the offering of an aggregate of 50,000,000 Units (the "Offering") for aggregate gross proceeds of $5,000,000.

The Corporation intends to use the net proceeds from the Offering to acquire certain oil and gas interests in Canada by way of joint venture, or other means, for exploration and development activities in the oil and gas sector as the initial part of a strategic oil and gas plan. Remaining proceeds, if any, will be used for general corporate purposes.

Sprott Private Wealth LP and other eligible parties (the "Finders") acted as finders for the Corporation under the Offering. The Finders were paid a cash commission equal to 6% of gross proceeds raised from applicable subscriptions and issued non-transferable finder's warrants ("Finder's Warrants") equal to 6% of the number of Units issued in connection with applicable subscriptions under the Offering. Each Finder's Warrant will entitle the Finder to acquire one additional Common Share at a price of $0.10 until April 11, 2016.

All Common Shares, Warrants and any Common Shares issued on exercise of the Warrants and Finder's Warrants are subject to a four (4) month statutory restricted resale period expiring on August 12, 2014.

Transfer of listing to NEX

The Corporation has been notified by the TSX Venture Exchange ("TSXV") that due to it no longer meeting continuous listing requirements, the Corporation's listing may be transferred to the NEX, a separate board of the TSXV, without further notice, until such time as the Corporation completes an acquisition whereupon the Corporation intends to then apply to re-list on the TSXV. The Corporation continues to pursue and evaluate potential acquisition opportunities and will make further announcements with respect to these efforts as soon as practically possible.

About the Corporation

Knol Resources Corp. is a publicly-traded junior oil and gas company seeking investment opportunities in the oil and gas sector. Knol Resources Corp. shares trade on the TSXV under the symbol "NOL".

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the use of proceeds of the Offering and a future acquisition of oil and gas interests. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the Corporation. Risk Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: general economic conditions, market risks relating to the oil and gas industry, the uncertainties involved in interpreting exploration results and other geological data and the ability of the Corporation to obtain the funds and resources required to carry out further exploration. The Corporation cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

Neither the TSX Venture Exchange nor it 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.

Not for distribution 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 laws.

Contact Information

  • Knol Resources Corp.
    Michael Atkinson
    President & CEO
    (604) 689-1428

    Knol Resources Corp.
    John Downes
    Interim CFO
    (604) 488-5415