Enterprise announces terms of financingEnterprise Energy Resources Ltd. has settled the terms of itspreviously announced private placement financing. The Company has arranged anon-brokered private placement of up to 16,666,666 units of the Company (the"Units") at a price of
.30 per Unit for gross proceeds of up to $5,000,000.Each Unit will consist of one common share and one-half of one common sharepurchase warrant (each whole such warrant, a "Warrant"). Each Warrant willentitle the holder to purchase an additional common share at a price of
.45for a period of 24 months from the closing date.
Closing of the private placement is anticipated to occur on orbefore February 14, 2011 and is subject to regulatory approval. Securitiesissued under the financing will be subject to a four month hold period beginningupon their issuance.
The proceeds of the private placement will be used to fund theinvestment by the Company's wholly owned subsidiary, EERL Energy LimitedPartnership, in Chimney Sweep Oil and Gas (US) L.L.L.P.
Separately, the Company advises that it has been named as oneof more than 30 defendants in a legal proceeding initiated in Ontario by TeskeyConstruction Co. Ltd. and others. The legal proceeding relates to an explosionat a propane facility in Toronto in 2008. The claim alleges that Ontario HoseSpecialities Ltd. ("OHSL") manufactured certain hoses used in the propanefacility, and that the Company may be a successor to OHSL. Until 2006 OHSL wasthe operating subsidiary of the Company and in 2006 the Company disposed of allof the shares of OHSL. The Company believes the claim against the Company iswithout merit and as the Company is not a successor to OHSL, it appears that thewrong defendant has been named. The Company is reviewing the steps available tohave itself removed as soon as possible as a defendant in the claim.
We seek Safe Harbor.
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