TSX-V: CWV: Crown Point Energy Inc. (“Crown Point” or the “Company”) today announced that it has completed a second closing with respect to the US$8.5 million second tranche (the “Second Tranche“) of its aggregate US$15 million financing with Liminar Energy S.A. (“Liminar“) and GORC S.A. (“GORC“). Crown Point issued 1,500,000 common shares to Liminar and 6,000,000 common shares to GORC at an issue price of US$0.25 per share for aggregate proceeds of US$1,875,000.
The purchase price was paid through the payment of $16,483,125 Argentine pesos (“ARS“) (based on the USD – ARS exchange rate of Banco de la Nación Argentina at the close of business on March 18, 2015, being US$1.00 = ARS$8.791). The balance of the Second Tranche financing (approximately US$5.83 million) will be completed in one or more closings in due course.
As a result of Liminar’s acquisition of 1,500,000 common shares, Liminar now owns and controls an aggregate of 30,676,344 common shares, representing approximately 21.73% of the issued and outstanding common shares of the Company. As a result of GORC’s acquisition of 6,000,000 common shares, GORC now owns and controls an aggregate of 6,000,000 common shares, representing approximately 4.3% of the issued and outstanding common shares of the Company. Under applicable securities laws and the rules of the TSX Venture Exchange, the common shares are subject to a four month hold period expiring on July 20, 2015.
The net proceeds from this closing will be used to fund the Company’s exploration and development program in Argentina and for general corporate purposes.
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About Crown Point
Crown Point Energy Inc. is an international oil and gas exploration and development company headquartered in Calgary, Canada, incorporated in Alberta, Canada, trading on the TSX Venture Exchange and operating in South America. Crown Point’s exploration and development activities are focused in the Austral and Neuquén basins in Argentina. Crown Point has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities to provide a basis for future growth.
Certain information set forth in this document, including: the balance of the Second Tranche will be completed in one or more closings; and the anticipated use of the net proceeds from the closing described herein, are considered forward-looking information, and necessarily involve risks and uncertainties, certain of which are beyond our control. Such risks include but are not limited to: failure to complete the remaining portion of the Second Closing; failure to complete the remaining portion of the Second Tranche on the timelines the Company has planned; and the risk that the use of proceeds, as described herein, may change. Actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. With respect to forward-looking information contained herein, Crown Point has made assumptions regarding, among other things: that the remaining portion of the Second Tranche will be completed in accordance with the terms set forth in the investment agreement (as amended); the use of proceeds will remain the same; the impact of increasing competition; the general stability of the economic and political environment in which the Company operates; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the costs of obtaining equipment and personnel to complete the Company’s capital expenditure program; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration activities; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, commodity price controls, import/export matters, taxes and environmental matters in Argentina; and the ability of the Company to successfully market its oil and natural gas products. Additional information on these and other factors that could affect us are included in reports on file with Canadian securities regulatory authorities, including under the heading “Risk Factors” in our annual information form, and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this document are made as of the date of this document, and we do not undertake any obligation to update publicly or to revise any of the forward looking statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities within the United States. The securities to be offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act or other laws.