VANCOUVER, Aug. 9, 2017 /CNW/ - PentaNova Energy Corp. (the
"Company") (TSXV: PNO), is pleased to announce that it has closed its previously announced acquisition (the
"Acquisition") of Patagonia Oil Corp. by way of Plan of Arrangement, including the acquisitions of the various oil and gas
interests in Argentina by Patagonia, as described in the Company's news releases of July 24 and July 28. Pursuant to the Acquisition, the Company issued an aggregate of 35,625,000 units at
$0.80 per unit to the underlying vendors of the oil and gas assets, which units consist of one
common share and one warrant, exercisable until July 31, 2022 at $1.05 per share. The Company also issued 2,283,750 shares in payment of various finder's fees in
relation to the Acquisition and the Patagonia assets, which shares are subject to a hold period expiring on December 9, 2017.
In connection with the closing, the $16.5 million which was placed into escrow on closing of the
Company's private placement of 20,625,000 subscription receipts at $0.80 per subscription receipt
has been released to the Company and the subscription receipts have automatically converted into units of the Company consisting
of one common share and one warrant, exercisable until July 31, 2022 at $1.05 per share.
The Company has also granted 22,187,500 stock options to various directors, officers, employees and consultants to the
Company, exercisable at $0.80 per share for a period of ten years.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this
news release. The information in this news release about the completion of the transaction described herein, and other
forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the
parties to the transactions described herein and the terms of such transaction.
Factors that could cause actual results to differ materially from those described in such forward-looking information
include, but are not limited to, risks related to the Company's or Patagonia's inability to satisfy a condition precedent to the
completion of the transaction (including obtaining necessary regulatory approvals), other risks related to completion of the
transactions and risks related to the inability of either of the Company or Patagonia to perform their respective obligations
under the transactions.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the
Company based on information currently available to the Company. In connection with the forward-looking information contained in
this news release, the Company has made assumptions about the Company's ability to complete the transactions and Patagonia's
ability to complete the acquisition of the Assets. The Company has also assumed that no significant events will occur outside of
the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking
information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance
should not be put on such information due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of
new information, future events or results or otherwise.
SOURCE PentaNova Energy Corp.
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