PetroNova Inc.
TSX VENTURE : PNA

PetroNova Inc.

December 20, 2010 09:31 ET

PetroNova Inc. Closes $65,400,000 Initial Public Offering

CALGARY, ALBERTA--(Marketwire - Dec. 20, 2010) -

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PetroNova Inc. (the "Company" or "PetroNova")(TSX VENTURE:PNA) is pleased to announce that it has completed its initial public offering (the "Offering"). Pursuant to the Offering, the Company issued an aggregate of 52,320,000 common shares at a price of $1.25 per share for gross proceeds of $65,400,000. The common shares were qualified for distribution pursuant to the final long form prospectus of the Company dated December 13, 2010, filed in each of the provinces of Canada, excluding Quebec. The Offering was completed through a syndicate of agents led by Raymond James Ltd. and including Canaccord Genuity Corp., FirstEnergy Capital Corp., GMP Securities L.P. and TD Securities Inc.

The net proceeds from the Offering will be used to fund the Company's exploration program, to carry out additional exploratory activities and for general and administrative expenses.

In connection with the closing of the Offering, the Company has granted incentive stock options (the "Options") to purchase an aggregate of 5,130,000 common shares of the Company to certain of its directors, officers, employees and consultants. The Options are exercisable for a period of five years at a price of $1.25 per common share.

In addition, the Company is pleased to announce that the common shares of the Company will commence trading today on the TSX Venture Exchange under the symbol "PNA".

Antonio Vincentelli, President and Chief Executive Officer of PetroNova, commented: "The Company is happy with the completed financing. We thank the investment community for its trust and confidence in the PetroNova team, as reflected in the positive response received to PetroNova's story as evidenced by the increase in the offering size. These funds will allow the Company to move forward and it is now in an solid position to carry on its exploration program."

About PetroNova Inc.

The Company, through its subsidiaries, is engaged in the exploration for, and the acquisition and development of, oil and natural gas resources in South America, specifically in Colombia. The Company's assets currently include the Company's interests in the PUT 2 and the Tinigua blocks located in the Caguan-Putumayo Basin in Colombia, both of which are operated by the Company, and the non-operated CPO 6, 7 and 13 blocks located in the Llanos Basin in Colombia.

Forward-Looking Information

This press release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of the Company, including, without limitation, those listed under the headings "Notice to Investors - Special Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's final long form prospectus. Forward-looking information in this press release includes, but is not limited to, information concerning the proposed use of the proceeds of the Offering. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information. Accordingly, prospective investors should not place undue reliance on these forward-looking statements.

These forward-looking statements are made as of the date of this press release and, other than as required by applicable securities laws, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • PetroNova Inc.
    Antonio Vincentelli
    President and Chief Executive Officer
    954-636-2948
    or
    PetroNova Inc.
    Stelvio Di Cecco
    Chief Financial Officer
    954-636-2948