Noravena Capital Corporation
TSX VENTURE : NRV.P

May 24, 2011 16:08 ET

Noravena Capital Corporation: Engagement Letter Regarding Qualifying Transaction and Concurrent Financing

TORONTO, ONTARIO--(Marketwire - May 24, 2011) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES.

Noravena Capital Corporation (the "Company") (TSX VENTURE:NRV.P) announces that it has entered into an engagement letter with Cornerstone Asset Management L.P. ("Cornerstone") to assist in identifying and concluding a transaction in the oil and gas business and to assist in raising a concurrent financing (the "Concurrent Financing"), which together will qualify as the Company's Qualifying Transaction. The Company has agreed to pay Cornerstone upon closing of the transaction a finder's fee of $100, 000, to be satisfied by the issuance of shares of the Company. The Company has also agreed to pay Cornerstone an agent's fee in connection with the Concurrent Financing equal to 7% of the gross proceeds of the Concurrent Financing and will issue to Cornerstone warrants to purchase securities equal to 7% of the applicable securities sold in the Concurrent Financing, exercisable for 24 months at an excise price per share equal to the issue price in the Concurrent Financing.

Investors are cautioned that trading in the securities of a capital pool company should be considered highly speculative.

The Company's documents may be accessed at www.sedar.com.

Neither the 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

  • Noravena Capital Corporation
    James P. Boyle
    President and Chief Executive Officer
    416-867-8800
    416-867-8833 (FAX)