GOLDEN, COLORADO and EDMONTON, ALBERTA--(Marketwire - Aug. 29, 2012) - The directors and management of Strata-X Ltd ("Strata-X" or the "Company") (TSX VENTURE:SXE) are pleased to advise that further to the Company's press release dated August 27, 2012, the Company has determined to offer both unsecured convertible debentures (the "Debentures") and units ("Units") as part of its $7 million private placement to provide flexibility to potential investors.
Each Unit will be made up of one common share and one-half of a common share purchase warrant (each whole warrant, a "Warrant") and will be priced at $0.25 per Unit. Each Warrant shall entitle the holder to acquire one common share of the Company at a price of $0.60 per share for a period of two years.
As previously stated, the Debentures shall have a term of one year. The principal amount of the Debentures shall bear interest at an annual rate of 5%, which interest shall be payable semi-annually in arrears. The Debentures shall be convertible to Units at a deemed price of $0.25 per Unit, the same price as the Units are being offered to investors in the private placement. The Debentures shall automatically convert into Units at the end of their term.
The Company may pay finders' fees to eligible parties and these fees may be in the form of cash or securities.
The proceeds of the private placement will be used for work upon the Company's existing properties including the Vail property, the completion of the shale oil project acquisition in Texas and for general working capital purposes. The private placement is subject to approval of the TSX Venture Exchange.
Strata-X is a Edmonton, Alberta and Golden, Colorado based company and is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in North Dakota, California, Colorado and Western Australia and production and development opportunities in California and Texas. Strata-X has 44,990,656 common shares outstanding and trades under the symbol SXE on the TSX.V.
Public documents for Strata-X Ltd. can be found at SEDAR (www.sedar.com).
This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions are intended to identify forward-looking statements. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected and the forward-looking statements included in this news release should not be unduly relied upon. See "Risks and Uncertainties" in the Company's Filing Statement dated August 30, 2011 available on SEDAR at www.sedar.com These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
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 release.