pcNewsWire – Point Loma Resources Ltd. (TSX-V: PLX) has entered into an investment agreement with Evenergy Company Limited for the issuance of 8,375,000 common shares at $0.48 per share for $4,020,000. The financing is expected to close in two tranches.
Point Loma Resources Announces Investment Agreement with Evenergy Company Limited for proceeds of $4,020,000
Calgary, Alberta, May 24, 2017: Point Loma Resources Ltd. (TSX VENTURE: PLX) (the “Corporation” or “Point Loma”) is pleased to announce an investment agreement with Evenergy Company Limited (“Evenergy”) for Evenergy to acquire 8,375,000 common shares of Point Loma for $4,020,000 representing a purchase price of $0.48 per share (the “Investment”).
- The Investment is expected to close in two tranches subject to certain regulatory approvals;
- The first tranche is anticipated to close May 29, 2017 in the amount of $1,797,541 in exchange for 3,744,878 common shares of Point Loma, representing a purchase price of $0.48 per share, subject to TSXV conditional approval;
- The second tranche of $2,222,459 in exchange for an additional 4,630,122 shares of Point Loma, representing a purchase price of $0.48 per share, is anticipated to close on the third business day following receipt of TSX Venture Exchange approvals;
- Upon completion of the second tranche Point Loma will have 42,078,907 common shares outstanding;
- Point Loma will utilize the funds to accelerate drilling and facilities plans previously announced; and
- Evenergy will have the right to nominate one director to the Board of Directors of the Corporation and the right to participate in future equity issuances of the Corporation to maintain its pro rata interest on the terms set out in the investment agreement.
With this investment agreement Point Loma has attracted another strategic investor that will allow Point Loma to accelerate currently identified opportunities and provides additional capital options to pursue opportunities in the core focus area of west central Alberta. Point Loma has been able to efficiently acquire certain strategic assets for accretive terms in the region and the Evenergy transaction will inject capital to further accelerate the Corporation’s drilling program and acquisition and exploitation opportunities through the remainder of 2017.
“Point Loma is excited to add to our capital programs in 2017 with this injection of capital at a key time in our growth cycle,” said Terry Meek, President and CEO of Point Loma. “Evenergy is an organization seeking further investment opportunities with Point Loma that, in conjunction with Salt Bush Energy, will allow for strong access to capital in this challenging energy market we face today. With this combination of capital sources Point Loma can look to strong growth in 2017 and beyond.”
GMP Securities LP and Mackie Research Capital Corporation have acted as the respective financial and strategic advisors to Point Loma in regards to this investment transaction.
Point Loma is currently producing approximately 700 boe/d (post-closing of the Salt Bush joint venture). The Corporation anticipates the acceleration of its development plan and the increase of production with the deployment of the proceeds through certain identified acquisitions, re-activations, development drilling and new pool drilling opportunities.
About Point Loma
Point Loma is a public oil and gas development and exploration company focused on horizontally exploiting conventional oil and gas reservoirs in west central Alberta. Point Loma’s business plan is to utilize its experience to drill, develop and acquire accretive assets with potential for horizontal multi-stage frac technology and exploit opportunities for secondary recovery. For more information and our current presentation please visit Point Loma’s website at www.pointloma.ca or Point Loma’s profile on the System for Electronic Document Analysis and Retrieval website at www.sedar.com.
Evenergy is a long term strategic investor targeting high quality oil and gas assets. Evenergy is a Hong Kong registered company, a subsidiary of Zhongcheng Group, one of the largest privately owned independent petroleum refinery, oil products and LPG distribution and retail companies in China.
For further information, please contact:
President and CEO
Telephone: (403) 705-5051 ext.101
Executive Vice-President Business Development
Telephone: (403) 705-5051 ext. 103
Vice President Finance and CFO
Telephone: (403) 705-5051 ext. 105