Touchstone to raise $2.55-million, seek AIM listing Touchstone to raise $2.55-million, seek AIM listing
Touchstone Exploration Inc (2) (C:TXP)
Shares Issued 83,137,170
Last Close 5/24/2017 $0.17
Thursday May 25 2017 - News Release
Mr. Paul Baay reports
TOUCHSTONE ANNOUNCES PROPOSED ADMISSION TO AIM AND CONDITIONAL PLACING OF 20,000,000 COMMON SHARES
Touchstone Exploration Inc. is proposing to raise approximately $2,552,000 through a private placement. A total of 20,000,000 new common shares have been conditionally placed ("Placing Shares"), at an issue price of 7.25 pence sterling (approximately C$0.1276) per Placing Share ("Placing Price") with new United Kingdom institutional investors.
In addition, the Company announces its intention to seek a dual listing by applying for admission of its issued and to be issued common shares of no par value ("Common Shares") to trading on the AIM market of the London Stock Exchange ("Admission"). Dealings are expected to commence on AIM on June 26, 2017.
The issuance of the Placing Shares is conditional on customary closing conditions, including the Admission becoming effective and the approval of the Private Placement by the Toronto Stock Exchange ("TSX"). The Company's Common Shares will continue to trade on the TSX along with AIM under the trading symbol TXP. The Placing Price represents a 20 percent discount to C$0.1589, which is the volume weighted average price of the Company's Common Shares for the five trading days ending May 17, 2017. A price protection form was filed with the TSX on May 17, 2017. The Placing Price was negotiated at arm's length between the Company and the joint brokers.
Paul Baay, President and Chief Executive Officer of Touchstone said, "I am delighted to announce our intention to dual list on AIM. We have a low risk, cash-generative production company in a proven petroleum region. Our growth strategy involves an initial program for the drilling of four new wells and 24 well recompletions in 2017, of which we are pleased to announce the first well has reached target depth. I look forward to welcoming our new investors when Touchstone lists on AIM."
Touchstone believes the dual listing provides a number of advantages, which includes:
- Enhancing liquidity for the Company's shareholders and providing direct access to the London capital markets;
- Enabling the Company to access a wider range of potential investors and broaden its investor base;
- Improving the Company's ability to access further funding from international capital markets and to finance the future growth of the business consistent with its current strategy;
- Enhancing the Company's reputation and financial standing within Trinidad.
The gross proceeds of the Private Placement are expected to be approximately $2.552 million which, together with existing cash balances, are expected to be used in drilling and development operations in 2017, for settlement of fees in respect of the transaction, and for general working capital purposes.
Shore Capital is acting as Nominated Adviser and Joint Broker to the Company alongside GMP FirstEnergy who is acting as Joint Broker. Additional information is available in the Appendix to the AIM Schedule One Pre-Admission Announcement, which will be available on the Company's website (www.touchstoneexploration.com).
Publication of Competent Person's Report ("CPR")
In conjunction with the dual-listing of the Company's Common Shares on AIM, the Company appointed GLJ Petroleum Consultants Ltd. to prepare a CPR which estimated the reserves associated with the Company's interests in Trinidad as at December 31, 2016. A summary of the gross reserves associated with the Company's interests in Trinidad are presented in the table below.
Light and medium oil (Mbbl) Heavy oil (Mbbl) Total oil (Mbbl) Proved Proved producing 3,955 651 4,606 Proved non-producing 735 213 948 Proved undeveloped 2,890 533 3,423 Total Proved 7,580 1,397 8,977 Probable 5,914 808 6,772 Total Proved Plus Probable 13,494 2,205 15,698 Possible 4,020 657 4,678 Total Proved Plus Probable Plus Possible 17,514 2,862 20,376 1. Gross Reserves are the Company's working interest share of the remaining reserves before deduction of any royalties. 2. Amounts may not add due to rounding. 3. See "Other Advisories".
The CPR will be filed under the Company's issuer profile on SEDAR (www.sedar.com) and on the Company's website (www.touchstoneexploration.com).
About Touchstone
Touchstone Exploration Inc. is a Calgary based company engaged in the business of acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange under the symbol "TXP".
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