VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 18, 2014) - (Petro One Energy Corp. (TSX VENTURE:POP)(PINKSHEETS:CUDBF)(FRANKFURT:C6K1) is pleased to announce that its $4,000,000 private placement announced on July 28, 2014 has been fully subscribed and that, due to high demand, it has placed an additional $2,000,000 on the same terms, principally with institutional investors and fund managers.
Based on the overwhelmingly positive response to its agreement with Korea Myanmar Development Company Ltd. ("KMDC") for funding of up to $100,000,000 to drill up to 97 oil wells (July 28, 2014 news release), the Company filed a price reservation with the TSX Venture Exchange for an additional $2,000,000. Both financings have been fully subscribed and the Company is now in a position to make its final filings with the Exchange.
"Petro One is now in a strong position to drill the first wells," said Peter Bryant, President. "With these financings firmly committed, the Company immediately commenced the permitting process for the initial planned wells. We look forward to reporting the commencement of drilling."
The Company will issue 8,000,000 units at the price of $0.25 per unit pursuant to the second private placement, bringing the gross proceeds from the two financings to $6,000,000. Each unit will comprised of one common share and one warrant, and each warrant will be exercisable at $0.375 for two years after closing, subject to accelerated exercise if the Company's shares trade over $2.00 for a period of 10 consecutive trading days after four months from the closing date.
Aberdeen Gould Capital Markets Ltd. is acting as the Company's Exempt Market Dealer in respect of both private placements, and will receive cash compensation equal to 8% of the gross subscription proceeds plus finder's warrants entitling Aberdeen to purchase that number of common shares which is equal to 8% of the number of units issued, exercisable at $0.25 for two years after closing, subject to acceleration on the same terms as the warrants comprised in the units.
The proceeds from the second private placement will be used for the Company's general working capital purposes. All shares issued pursuant to the offering and any shares issued pursuant to the exercise of warrants or finder's warrants will be subject to a four-month hold period from the closing date. Closing of both financings is scheduled for September 2, 2014, and the agreement with KMDC and the private placements are subject to acceptance by the TSXV.
The Company will report on further developments as they occur.
ON BEHALF OF THE BOARD
"Peter Bryant"
President & Director