Crown Point Announces Closing of Over-Subscribed Rights Offering
THIS PRESS RELEASE IS NOT FOR PUBLICATION OR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.
CALGARY, Alberta, May 23, 2018 (GLOBAL NEWSWIRE) — Crown Point Energy Inc. (TSX-V:CWV) (“Crown Point” or the “Company“) is pleased to announce that it has completed its previously announced rights offering which expired on May 22, 2018 (the “Rights Offering“) and was over-subscribed. At closing, Crown Point issued 40,000,000 common shares (“Common Shares“) of the Company at a price of US$0.30 per Common Share for gross proceeds of US$12,000,000 (approximately Cdn$15,343,200 based on the daily exchange rate published by the Bank of Canada of US$1.00 = Cdn$1.2786 on May 22, 2018). Following the closing of the Rights Offering, Crown Point has 72,903,038 Common Shares issued and outstanding.
Liminar Energía S.A. (“Liminar“), an insider and the Company’s largest shareholder, acquired an aggregate of 26,666,667 Common Shares in connection with the Rights Offering pursuant to its stand-by commitment. Liminar now owns an aggregate of 43,384,482 Common Shares, which represents approximately 59.5% of the issued and outstanding Common Shares following closing.
There were no selling fees or commissions paid in connection with the distribution. The net proceeds of the Rights Offering will be used in the manner disclosed in the (final) short form prospectus of the Company dated April 17, 2018 (the “Prospectus“), a copy of which is available on the Company’s SEDAR profile at www.sedar.com.
For inquiries please contact:
|Brian Moss||Marisa Tormakh|
|President & CEO||Vice-President & CFO|
|Ph: (403) 232-1150||Ph: (403) 232-1150|
|Crown Point Energy Inc.||Crown Point Energy Inc.|
About Crown Point
Crown Point Energy Inc. is an international oil and gas exploration and development company headquartered in Calgary, Canada, incorporated in Canada, trading on the TSX Venture Exchange and operating in South America. Crown Point’s exploration and development activities are focused in two of the largest producing basins in Argentina, the Austral basin in the province of Tierra del Fuego and the Neuquén basin, in the province of Mendoza. 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.
Forward looking information: Certain information set forth in this news release, including the use of proceeds from the Rights Offering, is considered forward-looking information, and necessarily involve risks and uncertainties, certain of which are beyond Crown Point’s control. Such risks include but are not limited to the risk that the Company may reallocate the net proceeds from the Rights Offering from the use of proceeds described in the Company’s Prospectus. 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 Crown Point will derive therefrom. With respect to forward-looking information contained herein, the Company has made certain assumptions, including that the Company will be able to deploy the net proceeds from the Rights Offering as anticipated. Additional information on these and other factors that could affect Crown Point are included in reports on file with Canadian securities regulatory authorities, including under the heading “Risk Factors” in the Prospectus and in the Company’s most recent annual information form, and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking information contained in this news release are made as of the date of this document, and Crown Point does not undertake any obligation to update publicly or to revise any of the included forward looking information, 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.