Raise Production Inc.
TSX VENTURE : RPC

Raise Production Inc.

January 26, 2017 17:39 ET

Raise Production Inc. Announces Proposed Private Placement

CALGARY, ALBERTA--(Marketwired - Jan. 26, 2017) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Raise Production Inc. (TSX VENTURE:RPC) ("Raise" or the "Company") announces that it intends to undertake a non-brokered private placement offering of up to 12,000,000 units of the Company ("Units") at a price of $0.25 per Unit for total gross proceeds of up to $3,000,000 (the "Offering"). The Company is targeting to raise up to $3,000,000 pursuant to the Offering, however, the Company retains the ability to raise up to $4,000,000 through the issue and sale of up to 16,000,000 Units if it so chooses.

Each Unit will consist of one common share of the Company (a "Common Share") and one half of one common share purchase warrant. Each whole warrant (a "Warrant") is exercisable for one Common Share for a period of 18 months from the closing date of the Offering at an exercise price of $0.40 per share, subject to accelerated expiry in certain circumstances at the discretion of the Company.

The net proceeds received by the Company from the Offering will be used for testing, development, and commercialization activities and for general corporate purposes.

The Units are expected to be offered to "accredited investors" within the meaning of National Instrument 45-106, or to such other qualified persons as may be determined by Raise. Qualified current shareholders that may be interested in participating in the Offering are encouraged to contact the Company directly.

The Company has agreed to pay a finder's fee of a maximum of 6% of the aggregate gross proceeds of the Offering and compensation options exercisable to acquire that number of Common Shares that is equal to a maximum of 6% of the aggregate number of Units issued and sold pursuant to the Offering to qualified agents that provide introductions to qualified investors that ultimately subscribe for Units.

The Common Shares issued pursuant to the Offering and Common Shares to be issued upon exercise of the Warrants will be subject to a four month hold period from the date of issuance. The closing of the Offering is conditional upon approval of the TSX Venture Exchange.

About Raise Production Inc.

Raise is an innovative oilfield service company that focuses its efforts on the production service sector, utilizing its proprietary products to enhance and increase ultimate production in both conventional and unconventional horizontal oil and gas wells.

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.

Certain information included in this news release constitutes forward-looking statements under applicable securities legislation. Forward-looking statements or information typically contain or can be identified by statements that include words such as "anticipate", "assume", "based", "believe", "can", "continue", "depend", "estimate", "expect", "forecast", "if", "intend", "may", "plan", "project", "propose", "result", "upon", "will", "within" or similar words suggesting future outcomes or statements regarding an outlook.

Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the Company's intention to complete the Offering and the use of proceeds from the issuance of the Units. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include management's ability to raise the expected proceeds of the Offering and the failure to obtain final approval of the Offering from the TSX Venture Exchange. Although the Company believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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