Sintana Announces Upsizing of Its Marketed Public Offering of Units
February 22 2022 - 12:12PM
Sintana Energy Inc. (TSXV: SEI) ("
Sintana" or the
"
Company") is pleased to announce that, due to
strong investor demand, it has increased the size of its previously
announced marketed public offering (the
“
Offering”) of units (the
“
Units”) of the Company. Under the amended terms,
the Company intends to issue the Units at a price of $0.15 per Unit
for minimum gross proceeds of $7,325,000 and a maximum gross
proceeds of $11,550,000 (subject to increase pursuant to an
over-allotment option to raise up to an additional $1,732,500).
With respect to the upsize of the Offering, an amended and restated
preliminary short form prospectus, which amends and restates the
preliminary short form prospectus of the Company dated January 28,
2022, has been filed with the securities commissions or similar
regulatory authorities in each of the provinces of Canada, other
than Quebec (the "
Canadian Jurisdictions"), and is
available on the Company's SEDAR profile at www.sedar.com.
Each Unit will consist of one common share of
the Company (each a “Common Share”) and one Common
Share purchase warrant (each a “Warrant”). Each
Warrant shall entitle the holder thereof to acquire one Common
Share for an exercise price of $0.25 for a period of 24 months
following the Closing Date.
The Company intends to use the net proceeds of
the Offering to fund the balance of the cash purchase price owing
in the amount of US$3,500,000 as partial consideration of its
previously announced proposed acquisition of 49% of the outstanding
shares of Inter Oil (Pty) Ltd., as well as certain future
obligations of the Company in connection with Namibian property
interests to be acquired pursuant thereto, to satisfy existing
indebtedness, future strategic acquisitions, working capital,
general corporate purposes, investor relations and marketing
services.
The Offering will be conducted by Echelon
Capital Markets as lead agent and sole bookrunner (the
“Agent”) and is subject to customary closing
conditions, including approval of the securities regulatory
authorities and the TSX Venture Exchange.
The Offering will be completed on a commercially
reasonable “best efforts” basis (i) by way of the short form
prospectus filed in the Canadian Jurisdictions; and (ii) on a
private placement basis in the United States pursuant to exemptions
from the registration requirements of the United States Securities
Act of 1933, as amended (the “U.S. Securities
Act”); and (iii) outside Canada and the United States on a
basis which does not require the qualification or registration of
any of the Company’s securities under domestic or foreign
securities laws.
The Offering is expected to close on or about
February 28, 2022, or such other date as the Company and the Agent
may agree (the "Closing Date").
The Company has granted the Agent an option to
increase the size of the Offering by up to 15%, exercisable in
whole or in part at any time for a period of 30 days after and
including the Closing Date
This news release does not constitute an offer
to sell or a solicitation of an offer to sell any of the securities
in the United States. The securities have not been and will not be
registered under the U.S. Securities Act or any state securities
laws and may not be offered or sold within the United States or to
U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About SintanaThe Company is
currently engaged in hydrocarbons exploration and development
activities in Colombia's Magdalena Basin. Sintana's business
strategy is to acquire, explore, develop, and produce superior
quality assets with significant reserves potential.
On behalf of Sintana Energy Inc.,
"Douglas G, Manner"Chief Executive Officer
For additional information regarding Sintana and
ongoing corporate activities, please visit the Company's website at
www.sintanaenergy.com
Neither the TSX Venture Exchange nor its
regulation services provider has reviewed or accepted
responsibility for the adequacy or accuracy of this press
release.Corporate Contacts:
Douglas G. MannerChief Executive OfficerTel:
832.279.4913
Sean J. AustinVice PresidentTel:
713.825.9591
Forward-Looking Information
Certain information set forth in this news
release may contain forward-looking statements that involve
substantial known and unknown risks and uncertainties, including
statements as to the completion of the Offering (including the
timing thereof), receipt of applicable regulatory approvals,
proposed use of proceeds and completion of the proposed acquisition
by the Company of 49% of the outstanding shares of Inter Oil (Pty)
Ltd. These statements are subject to various risks and
uncertainties, many of which are beyond the control of the Company,
including risks related to the satisfaction of all outstanding
closing conditions for the completion of the proposed acquisition
of 49% of the outstanding shares of Inter Oil (Pty) Ltd. and/or
Offering, the amount of funds raised pursuant to the Offering, if
any, political and security risks relating to operations in
Namibia, availability of capital, permitting and land title issues,
the risks inherent in oil and gas exploration and development
activities, and such other risk factors as set forth in the
Company's continuous disclosure documents available on SEDAR from
time to time. Readers are cautioned that the assumptions used in
the preparation of such information, although considered reasonable
at the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.
The Company disclaims any obligation to update the forward looking
statements contained herein other than as required under applicable
securities laws.
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