/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES/
TSX VENTURE SYMBOL: PXL
CALGARY, Jan. 17, 2013 /CNW/ - Palliser Oil & Gas Corporation (TSXV: PXL) ("Palliser" or the "Company"), is pleased to announce that it has entered into an agreement with Octagon Capital Corporation, on behalf of a syndicate of underwriters (the "Underwriters"), to issue 5,000,000 common shares (the "Common Shares") of the Company at a price of $0.63 per Common Share for gross proceeds of $3,150,000 on a bought deal short form prospectus offering basis (the "Offering") in the Provinces of British Columbia, Alberta and Ontario. The Common Shares may also be offered in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.
The Company has also granted the Underwriters an option (the "Underwriter's Option") to increase the size of the Offering by up to an additional 750,000 Common Shares at a price of $0.63 per Common Share, such Underwriter's Option being exercisable at any time up to 48 hours prior to the closing of the Offering. If the Underwriter's Option is exercised in full, the aggregate gross proceeds raised will be approximately $3,622,500.
The net proceeds from the issuance of Common Shares under the Offering will be used by Palliser to fund the development and acquisition programs of the Company and for general corporate purposes.
The Offering is scheduled to close on or about January 31, 2013 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, and other applicable securities regulatory authorities.