Newton Energy Corporation

July 03, 2008 18:17 ET

Newton Energy Announces Offering of Common Shares

CALGARY, ALBERTA--(Marketwire - July 3, 2008) - Newton Energy Corporation ("Newton" or the "Company") is pleased to announce that its Board of Directors has approved a private placement of up to 1,362,500 common shares of the Corporation (the "Offering"), at a price of $1.00 per share for aggregate proceeds of up to $1,362,500 subject to regulatory and TSX Venture Exchange approval. Pursuant to applicable securities legislation the common shares are subject to a four month and one day hold period from date of closing.

Wolverton Securities Ltd. ("Wolverton") has agreed to act as agent for the Offering. Wolverton will be paid a corporate finance fee of $6,250 (plus GST), $3,000 plus GST which will be non-refundable and a cash commission of up to 7% of the gross proceeds of the Offering. In addition, the Agent will be granted Agent's Options (the "Agent's Options") on the closing date to purchase that number of common shares equal to 10% of the number of common shares subscribed for under the Offering exercisable into common shares at a $1.00 per share for a period of eighteen (18) months from the closing date.

The gross proceeds of the Offering will be used to meet the exploration and development requirements of its newly obtained United Kingdom licenses in the onshore East Midlands Basin.

About Newton Energy

Newton is in the business of exploration and development of petroleum in the East Midlands Basin onshore in the United Kingdom.

The Company must meet the minimum listing requirements of the TSX Venture Exchange before its common shares will be reinstated for trading. A further press release will be issued when the Company meets minimum listing requirements.

ADVISORY:

Certain information regarding the Offering may constitute forward-looking statements under applicable securities laws and necessarily involve certain risks. Specifically, the Company may not complete the Offering which could have a negative impact on the business of the Company and its ability to meet all of its exploration and development requirements. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

The TSX Venture Exchange has neither approved or disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Newton Energy Corporation
    Michael Frey
    President and CEO
    (403) 410-3826
    or
    Newton Energy Corporation
    200, 638 - 11th Avenue SW
    Calgary, Alberta T2R 0E2
    (403) 410-3826
    Email: newtonenergy@shaw.ca