Porto Energy arranges financing for up to $15-million
Ticker Symbol: C:PEC
Porto Energy arranges financing for up to $15-million
Porto Energy Corp (C:PEC)
Shares Issued 198,954,653
Last Close 3/12/2014 $0.015
Thursday March 13 2014 - News Release
Mr. Heath Cleaver reports
PORTO ENERGY SIGNS A NON-BINDING TERM SHEET FOR A US$15 MILLION CONVERTIBLE PROMISSORY NOTE FINANCING AND PROVIDES OPERATIONAL UPDATE
Porto Energy Corp. and its wholly owned subsidiary Mohave Oil and Gas Corp. have entered into a non-binding term sheet with Integrity Growth Capital LLC on behalf of accredited investors for a private placement of senior unsecured convertible promissory notes in the principal minimum amount of $10-million (U.S.) and up to $15-million (U.S.). The proceeds from the Financing will be used to drill, test and complete one Lias unconventional resource well and for other corporate purposes as determined by a Committee of the holders of Notes.
The Notes will be convertible into Mohave common stock. The applicable conversion rate of each Note shall be determined in a manner such that the holders of the Notes, in the aggregate, will own ninety percent (90%) of the outstanding voting capital stock of Mohave at the time of the conversion. The remaining 10% of the Company at the time of the conversion will be owned by Porto.
The closing of the Financing is expected to occur on or before May 31, 2014 and, if successful, is subject the negotiation and execution of definitive agreements, board approval, the approval of Porto shareholders and regulatory approval including the satisfaction of customary conditions of the TSXV. Porto is no longer pursuing the non-brokered private placement announced in its press release dated November 12, 2013.
In connection with the Company's seismic data sales agreement with TGS-NOPEC Geophysical Company ASA as disclosed in its press release dated January 29, 2014, approval from the Portuguese government has yet to be received. Management anticipates receiving this approval soon.
We seek Safe Harbor.
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