Raise Production Inc.

August 14, 2012 18:23 ET

Raise Production Inc. Announces Completion of Brokered Private Placement With Macquarie Private Wealth Inc.

CALGARY, ALBERTA--(Marketwire - Aug. 14, 2012) -


Raise Production Inc. ("Raise" or the "Company") (TSX VENTURE:RPC) is pleased to announce the closing of a brokered private placement effective August 14, 2012. Further to the Company's news release dated July 18, 2012, the private placement consisted of the issuance and sale of an aggregate of 23,333,333 units (the "Units") for aggregate gross proceeds of $3,500,000 (the "Offering"). Each Unit is comprised of one common share in the capital of the Company (a "Common Share") and one non-transferable Common Share purchase warrant (a "Warrant"). Each Warrant is exercisable to acquire one Common Share at a price of $0.225 until February 14, 2014.

Pursuant to an Agency Agreement dated effective July 10, 2012 between Raise and Macquarie Private Wealth Inc. (the "Agent"), the Company paid the Agent a cash commission equal to 7% of the aggregate gross proceeds of the Offering plus certain expenses. Raise also issued 1,633,333 compensation options (the "Compensation Options") to the Agent. Each Compensation Option is exercisable to acquire one Unit at a price of $0.15 per Unit until February 14, 2014.

The Common Shares and the Common Shares issuable upon the exercise of the Warrants are subject to a four month plus one day resale restriction pursuant to National Instrument 45-102 (Resale of Securities). The securities issued under the private placement must not be traded before December 15, 2012 unless otherwise permitted under securities legislation.

The proceeds received by the Company from the Offering will be used for development and commercialization of its horizontal production technology and working capital.

About Raise Production Inc.

The Company is an innovative oilfield service company that focuses its efforts on the production service sector, the production services segment utilizes its patented products to enhance and increase ultimate production in both conventional and unconventional gas, oil, and CBM wells. The Company was founded in 1994 and is listed on the TSX Venture Exchange.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This news release may contain forward-looking statements, including statements regarding the Private Placement and the use of proceeds from the Private Placement and other statements that are not historical facts. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.

Neither 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 news release.

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