Yoho Resources Inc.
TSX VENTURE : YO

Yoho Resources Inc.

June 16, 2015 09:30 ET

Yoho Announces Closing of Bought Deal Private Placement

CALGARY, ALBERTA--(Marketwired - June 16, 2015) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Yoho Resources Inc. ("Yoho" or the "Company") (TSX VENTURE:YO) is pleased to announce that it has closed its previously announced bought deal private placement (the "Private Placement") with a syndicate led by Acumen Capital Finance Partners Limited including FirstEnergy Capital Corp. (collectively, the "Underwriters"). Pursuant to the Private Placement, Yoho has issued 950,000 common shares ("Common Shares") of the Company at a price of $0.63 per Common Share, 7,562,300 Common Shares issued on a "flow-through" basis pursuant to the provisions of the Income Tax Act (Canada) in respect of Canadian development expenses (the "Flow-Through Shares") at a price of $0.68 per Flow-Through Share and $11,835,000 aggregate principal amount of 8.25% convertible secured second lien debentures (the "Debentures") at a price of $1,000 per Debenture. The Private Placement includes the issuance by Yoho of 150,000 Common Shares, 950,535 Flow-Through Shares and $1,835,000 aggregate principal amount of Debentures pursuant to the partial exercise of the option (the "Underwriters' Option") granted to the Underwriters, for aggregate gross proceeds of $17,575,864. The Underwriters were paid a cash commission of $636,145.24.

The Underwriters may exercise the remaining portion of the Underwriters' Option, in whole or in part, for a period of 30 days from the date hereof, to purchase an additional combination of Common Shares, Flow-Through Shares and/or Debentures on the same terms and conditions as the Private Placement for additional aggregate gross proceeds of up to $2,374,136, being the full amount of the Underwriters' Option less the amount exercised today.

Proceeds of the Private Placement will be used to initially reduce Yoho's existing bank indebtedness and for general corporate purposes, with the gross proceeds from the sale of the Flow-Through Shares to be used to fund ongoing activities eligible for Canadian development expenses to be renounced in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2015.

The securities issued pursuant to the Private Placement are subject to a four-month hold period from the date hereof, which expires on October 17, 2015.

Forward Looking Information

This press release contains forward looking statements. More particularly, this press release contains statements concerning the exercise of the remainder of the option granted to the Underwriters and the anticipated use of proceeds of the Private Placement. Although Yoho believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Yoho can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the proceeds of the Private Placement by Yoho might change if the board of directors of the Company determines that it would be in the best interests of Yoho to deploy the proceeds for some other expenditures.

The forward looking statements contained in this press release are made as of the date hereof and Yoho undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The securities offered 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 the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Yoho Resources Inc.
    Brian McLachlan
    President and Chief Executive Officer
    (403) 537-1771 x103

    Yoho Resources Inc.
    Wendy Woolsey
    Vice President, Finance and Chief Financial Officer
    (403) 537-1771 x102