Solimar Announces Closing of Private Placement
February 20 2014 - 6:30AM
Marketwired
Solimar Announces Closing of Private Placement
MELBOURNE, AUSTRALIA--(Marketwired - Feb 20, 2014) - Solimar
Energy Limited ("Solimar" or the "Company")
(ASX:SXS)(TSX-VENTURE:SXS) is pleased to announce that, further to
its previous announcements dated January 31, 2014 and February 3,
2014 concerning a non-brokered placement, it has issued a total of
9,335,385 units ("Units") at a price of C$0.065 per Unit for
aggregate gross proceeds of $606,800 (the "Offering"). Each Unit is
comprised of one (1) ordinary share of Solimar ("Share") and one
half of one (0.5) right ("Right"). Each Right, upon receipt of
approval by the shareholders of Solimar, entitles the holder to
receive one warrant ("Warrant") to purchase one (1) Share at an
exercise price of $0.065 for a 24 month period following
closing.
Pursuant to the Offering, Canacol Energy Ltd. (the "Subscriber")
purchased an aggregate of 4,720,000 Units for aggregate
consideration of $306,800. Immediately following completion of the
Offering, the Subscriber had beneficial ownership of, and control
and direction over, an aggregate of 5,516,054 Shares, or
approximately 9.64% of the Shares outstanding. Immediately
following completion of the Offering, the Subscriber also had
beneficial ownership of 796,054 warrants. If such warrants are all
exercised, the Subscriber would have beneficial ownership of, and
control and direction over, 6,312,108 Shares, or approximately
10.88% of the Shares outstanding. If and when the shareholders of
Solimar approve the conversion of the Rights to Warrants under the
terms of the Offering, and if all such Warrants held by the
Subscriber are exercised in addition to the 796,054 warrants
currently held, the Subscriber would have beneficial ownership of,
and control and direction over, 8,672,108 Shares, or approximately
14.37% of the Shares outstanding.
The Subscriber acquired the Units for investment purposes. The
Subscriber intends to review its investment in Solimar on a
continuing basis. Depending on various factors including, but not
limited to, Solimar's financial position, the market price of the
Shares, conditions in the securities markets and general economic
and industry conditions, the Subscriber's business or financial
condition and other factors and conditions the Subscriber deems
appropriate, the Subscriber may in the future take such actions
with respect to its investment in Solimar as the Subscriber
considers appropriate. The Subscriber may in the future acquire
ownership of, or control and direction over, further Shares. The
Units were acquired by the Subscriber pursuant to an exemption from
the prospectus requirement of applicable securities legislation at
Section 2.3 of National Instrument 45-106, based on the net asset
value of the Subscriber.
Securities issued are subject to a four-month hold period
expiring June 1, 2014 and June 20, 2014, respectively, in
accordance with applicable securities laws.
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 release.
Reader Advisory: Forward-looking statements
This news release contains forward-looking information relating
to the private placement, planned development and exploration
activities on the properties in which the Company has interests,
and other statements that are not historical facts. Such
forward-looking information is subject to important risks,
uncertainties and assumptions. The results or events predicated in
this forward-looking information may differ materially from actual
results or events. As a result, you are cautioned not to place
undue reliance on this forward-looking information.
Forward-looking information is based on certain factors and
assumptions. While the Company considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect.
Forward looking-information is subject to certain factors,
including risks and uncertainties that could cause actual results
to differ materially from what is currently expected. These factors
include risks associated with the private placement, risks
associated with instability of the economic environments in which
the Company operates or owns interests, oil and gas exploration,
development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to
retain drilling rigs and other services, incorrect assessment of
the value of acquisitions, failure to realize the anticipated
benefits of acquisitions, delays resulting from or inability to
obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources, reliance on
key personnel, regulatory risks and delays, including risks
relating to the acquisition of necessary licenses and permits,
environmental risks and insurance risks.
You should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. While the Company may elect to, the Company is under no
obligation and does not undertake to update this information at any
particular time, except as required by law.
ABN 42 112 256 649
Jason Bednar - DirectorPhone +1 805 643 4100 or (03) 9347
2409www.solimarenergy.com.auSolimar Energy Limited