Yoho Resources Inc.

Yoho Resources Inc.

February 07, 2011 07:57 ET

Yoho Resources Inc. Announces Bought Deal Private Placement

CALGARY, ALBERTA--(Marketwire - Feb. 7, 2011) -


Yoho Resources Inc. ("Yoho" or the "Company") (TSX VENTURE:YO) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Acumen Capital Finance Partners Limited and including Paradigm Capital Inc., FirstEnergy Capital Corp. and Peters & Co. Limited (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a bought deal private placement basis, for resale, 1,500,000  common shares of the Company (the "Common Shares") at an issue price of $4.00 per Common Share and to place on a bought deal private placement basis 833,334 Common Shares to be issued on a "flow through" basis pursuant to the provisions of the Income Tax Act (Canada) (the "Flow-Through Shares") at an issue price of $4.80 per Flow-Through Share for aggregate gross proceeds to Yoho of $10,000,003.20 (the "Offering"). The Common Shares and the Flow-Through Shares will be subject to a four month hold period.

Additionally, the Company has agreed to grant the Underwriters an option, exercisable in whole or in part up to two business days prior to closing of the Offering, to purchase on a private placement basis, for resale, up to 500,000 additional Common Shares at an issue price of $4.00 per Common Share for additional gross proceeds of up to $2,000,000. The Offering is scheduled to close on or about February 24, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange ("TSXV").

Proceeds of the Offering will be used to initially reduce Yoho's existing bank indebtedness and to accelerate Yoho's exploration and development program, with the gross proceeds from the sale of the Flow-Through Shares used to fund ongoing exploration activities eligible for Canadian exploration expenses which will be renounced in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2011. 

Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focused in west central Alberta, the Peace River Arch of Alberta and northeast British Columbia.  The common shares of Yoho are listed on the TSX Venture Exchange under the symbol "YO".

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Yoho will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.

ADVISORY: This press release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the anticipated closing date of the Offering and the anticipated use of the net proceeds of the Offering. 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 closing of the Offering could be delayed if Yoho is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the Offering by Yoho might change if the board of directors of Yoho determines that it would be in the best interests of Yoho to deploy the proceeds for some other purpose, such as an acquisition. The forward looking statements contained in this press release are made as of the date hereof and Yoho undertakes no obligations 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.

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

  • Yoho Resources Inc.
    Wendy S. Woolsey
    Vice President, Finance and CFO
    (403) 537-1771