CALGARY,
AB, Oct. 6, 2022 /CNW/ - Petro-Victory Energy
Corp. ("Petro-Victory" or the "Company") (TSXV: VRY) announces
US$1.7M financing.
Corporate Update
The Company is pleased to announce that it has closed on
US$1.7 million of secured financing
from 579 Max Ltd. (the "Lender"). The new financing will bear
interest at the rate of 12% per annum, payable quarterly, with
principal due at maturity on March 31,
2024. The Lender shall receive 500,000 warrants (the
"Warrants") where each one Warrant will entitled the holder
thereof to to purchase one common share in the Company ("Common
Shares") for three years at an exercise price equal to CAD$3.00 per share. The financing will be
pari-passu to the current US$5
million debenture announced on September 3, 2021.
The financing and the issuance of the Warrants each constituted
a "related party transaction" under Multilateral Instrument 61-101
- Protection of Minority Security Holders in Special
Transactions ("MI 61-101") as the Lender is a related party
(as defined in MI 61-101) of the Company. The Company relied on
the exemptions from the formal valuation and minority shareholder
approval requirements of MI 61-101 contained in Sections 5.5(a) and
5.7(1)(a) of MI 61-101 in respect of related party matters, as
the Company is listed on the TSX Venture Exchange ("TSXV") and
neither the fair market value (as determined under MI 61-101) of
the subject matter of, nor the fair market value of the
consideration for, the transaction, insofar as it involves the
related parties, exceeded 25% of the Company's market
capitalization (as determined under MI 61-101).
The Company is also pleased to announce that it has acquired a
3% net profit interest of future hydrocarbon production in the
Pirity Block concession located in the Republic of Paraguay. The acquisition is an arm's length
transaction for consideration of US$25,000 and 100,000 warrants ("Pirity
Warrants") where each Pirity Warrant will entitle the holder
thereof to purchase one additional Common Share for a price of
CAD$3.00 per share.
The issuance of the Warrants and Pirity Warrants are subject to
approval of the TSXV. The Warrants, Pirity Warrants and the Common
Shares issuable on exercise of the Warrants or the Pirity Warrants
are each subject to a four-month hold period from the date of
issuance in accordance with applicable securities laws.
About Petro-Victory Energy
Corp.
Petro-Victory Energy Corp. is engaged in the acquisition,
development, and production of crude oil and natural gas resources
in Brazil. The company holds 100%
operating and working interests in thirty-eight (38) licenses
totaling 257,604 acres in two (2) different producing basins in
Brazil. Petro-Victory generates
accretive shareholder value through disciplined investments in high
impact, low risk assets. The Company's Common Shares trade on the
TSX Venture Exchange ("TSXV") under the ticker symbol VRY.
Cautionary Note
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of
the
TSXV) accepts responsibility for the adequacy
or accuracy of this release.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities, in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities laws and may not be
offered or sold within the United
States unless an exemption from such registration is
available.
Advisory Regarding
Forward-Looking Statements
In the interest of providing Petro-Victory's shareholders and
potential investors with information regarding Petro-Victory's
future plans and operations, certain statements in this press
release are "forward-looking statements" within
the meaning of the United States Private Securities
Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable
Canadian securities legislation (collectively,
"forward-looking statements"). In some cases, forward-looking
statements can be identified by terminology such as "anticipate",
"believe", "continue", "could",
"estimate", "expect", "forecast", "intend", "may", "objective", "ongoing", "outlook", "potential", "project", "plan",
"should", "target", "would", "will" or similar words
suggesting future outcomes, events or performance. The
forward-looking statements contained in this press release
speak only as of the
date thereof and are expressly
qualified by this cautionary statement.
Specifically, this press
release contains forward-looking statements relating
to but not limited to: our business
strategies, plans and objectives, and drilling, testing and
exploration expectations. These forward-looking statements are
based on certain key assumptions regarding, among other
things: our ability to add production and reserves through our
exploration activities; the receipt, in a timely manner, of
regulatory and other required approvals for our operating
activities; the availability and cost of labor and other
industry services; the continuance of existing and, in
certain circumstances, proposed tax and royalty regimes; and
current industry conditions, laws and regulations continuing
in effect (or, where changes are proposed, such changes
being adopted as anticipated). Readers are cautioned that
such assumptions, although considered reasonable by
Petro-Victory at the time of preparation, may
prove to be incorrect.
Actual results achieved will vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors.
The above summary of assumptions and risks related to
forward-looking statements in this
press release has been provided in order to provide
shareholders and potential
investors with a more complete perspective on
Petro-Victory's current and future operations and such information
may not be appropriate for other purposes. There is no
representation by Petro-Victory that actual results achieved will
be the same in whole or in part as those referenced in the
forward-looking statements and Petro-Victory does not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable
securities law.
SOURCE Petro-Victory Energy Corp.