Twoco Petroleums Ltd.

Twoco Petroleums Ltd.

March 31, 2009 18:03 ET

Twoco Petroleums Ltd. Announces Closing of Private Placement of $8,300,000 of 17% Debentures and Warrants to Purchase Common Shares

CALGARY, ALBERTA--(Marketwire - March 31, 2009) - Twoco Petroleums Ltd. ("Twoco" or the "Corporation") (TSX VENTURE:TWO) announces that it has closed its previously announced private placement of $8,300,000 of principal amount of unsecured debentures ("Debentures") and warrants to purchase common shares. Subscribers for Debentures received one-half of one share purchase warrant for each $1.00 of principal amount of Debentures. Each whole share purchase warrant entitles the holder thereof to purchase a common share of the Corporation at a price of $1.20 per share at any time prior to 4:00 p.m. (Calgary time) on March 31, 2011. An aggregate of 4,150,000 common shares may be issued if all of the share purchase warrants are exercised prior to their expiry. The Debentures bear interest at the rate of 17% per annum, payable commencing June 30, 2009 and quarterly thereafter and will mature March 31, 2011. The Debentures are not redeemable by the Corporation. The proceeds of the offering will be used, in part, to repay the 7.5% redeemable, convertible unsecured debentures of Twoco which mature March 31, 2009 and for general corporate purposes. The Corporation paid a total of $128,600 in finder's fees in connection with the sale of the Debentures. The Debentures, share purchase warrants and any common shares issuable upon the exercise of the share purchase warrants have a hold period which expires August 1, 2009.

Twoco is an oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves primarily in the Province of Alberta. Twoco has 14,941,406 common shares issued and outstanding as at today's date.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Twoco in the United States. The securities of the Corporation will not be and have not been registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws. Accordingly, the Debentures may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.

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.

Contact Information

  • Twoco Petroleums Ltd.
    Wayne A. Malinowski
    President and Chief Executive Officer
    (403) 231-8653
    (403) 237-6048 (FAX)