SPRING, Texas, Dec. 18, 2013 /PRNewswire/ -- True North
Energy Corp. ("True North") (OTC Pink: TNEN) today announced that
it has signed a letter of intent (LOI) with Southridge Partners II,
LP, ("Southridge"), an institutional investor, outlining terms for
an equity purchase agreement (EPA) in the amount of $5 million, which if funded, will create
significant growth capital for True North.
Under terms of the LOI, upon execution of the EPA, and subject
to certain closing conditions, True North will have the right, but
not the obligation to sell, from time to time, up to $5 million of its common stock to Southridge
under terms deemed favorable by management by submitting a Draw
Down Notice in an amount that the company determines.
In order to Draw Down on the EPA, True North will need to have
obtained effectiveness of a Form S-1 registration statement with
the Securities and Exchange Commission, a process which it
plans to initiate in 2014, funding permitting.
"We are pleased to be partnering with Southridge, an
institutional investor with a long, reliable history of providing
capital to the small cap space. We believe this capital will be
sufficient to fund our growth strategy," commented Gilbert Steedley, CEO of True North, who
continued, "We believe that the terms of this agreement are
favorable to our shareholders and provide True North with the best
opportunity to execute its business plan and deliver long-term
shareholder value. We are thankful for the confidence Southridge
has shown in True North, our management, and our strategy."
"True North Energy Corporation, with its recent collaboration
agreements and its progress in improving its debt to asset ratio,
provided us with the confidence necessary to commit to provide
growth capital. We are excited to partner with True North and its
seasoned management as they execute their strategy," commented
Stephen Hicks, Principal and CEO of
Southridge. The closing of the EPA transaction is subject to the
negotiation and execution of definitive agreements.
About Southridge
Southridge is a diversified
financial holdings company that specializes in funding and advising
small cap and growth companies in the public markets. Since 1996,
the structured finance team at Southridge has made direct
investments of over $1.75 Billion in
over 300 companies globally. Southridge advises small public
companies on a wide variety of corporate issues from the process of
becoming a public company, to individualized financing techniques,
to optimized balance sheet management. For further information
about Southridge, please visit www.southridge.com
About True North Energy Corporation
True North Energy
Corporation is engaged in the acquisition and development of oil
and gas properties. It holds overriding royalty interests on
properties located in Alaska and
Colorado. True North is
headquartered in Spring, Texas.
For further information about True North, please visit
www.tnencorp.com.
This press release may contain forward-looking statements,
including information about management's view of True North's
future expectations, plans and prospects. In particular, when used
in the preceding discussion, the words "believes," "expects,"
"intends," "plans," "anticipates," or "may," and similar
conditional expressions are intended to identify forward-looking
statements. Any statements made in this news release, including
those regarding the LOI, EPA, True North's plans to become
fully-reporting, file a registration statement and raise funds
pursuant to the LOI/EPA, other than those of historical fact, about
an action, event or development, are forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors, which may cause the results of True North, its
divisions and concepts to be materially different than those
expressed or implied in such statements. The forward-looking
statements included in this press release are made only as of the
date hereof. True North cannot guarantee future results, levels of
activity, performance or achievements. Accordingly, you should not
place undue reliance on these forward-looking statements. Finally,
True North undertakes no obligation to update these statements
after the date of this release, except as required by law, and also
takes no obligation to update or correct information prepared by
third parties that are not paid for by True North.
SOURCE True North Energy Corporation