SKANA Capital Corp.
TSX VENTURE : SKN

SKANA Capital Corp.

December 27, 2006 13:32 ET

SKANA Capital Corp.: $30,050,422 Million Private Placement Closes

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 27, 2006) - SKANA Capital Corp. (TSX VENTURE:SKN) ("SKANA"), is pleased to announce that today it has closed its previously announced financing (see press releases dated October 13, 2006). SKANA issued a total of 26,130,802 units at a price of $1.15 per unit for gross proceeds of $30,050,422. Each Unit consists of one common share and one share purchase warrant entitling the holder to purchase one additional common share at a price of $2.00 per share for a period of one year from the date of closing. SKANA may force exercise of the warrants if the closing price of SKANA's shares exceeds $2.50 for 20 consecutive trading days. In connection with the non-brokered private placement, SKANA paid finders' fees of $1,294,135.44 of which $590,335.44 was paid to TSX Venture Exchange members.

All securities issued in the private placement are subject to a hold period expiring April 23, 2006.

About SKANA Capital Corp.

SKANA is listed on TSX Venture Exchange as an Investment Issuer and carries on business as a merchant bank. It makes strategic investments in oil and gas and other resource-based opportunities that it believes will offer excellent returns through its financial involvement and management expertise.

This news release contains certain statements that may be deemed "forward-looking statements". All statements, other than statements of historical fact, that address events or developments that SKANA expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although SKANA believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and production successes or failures, continued availability of capital and financing, inability to obtain required shareholder or regulatory approvals, and general economic market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of SKANA's management on the date the statements are made.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • SKANA Capital Corp.
    Neil Halldorson
    President and CEO
    (604) 669-4899