Canada Energy arranges $400,000 private placement

Canada Energy arranges $400,000 private placement

2022-01-06 16:18 ET - News Release

Mr. Grant Hall reports

CANADA ENERGY PARTNERS ARRANGES PRIVATE PLACEMENT

Canada Energy Partners Inc. has arranged a non-brokered private placement to raise gross proceeds of up to $400,000 through the issuance of up to five million units at a purchase price of eight cents per unit.

Each unit shall consist of one common share and one non-transferable common share purchase warrant. Each warrant entitles the holder to acquire one share at an exercise price of 12 cents for a period of 12 months following the closing date of the private placement. Subject to TSX Venture Exchange acceptance, the company may pay finders' fees in cash or finders' warrants to arm's-length finders in amounts to be negotiated.

The company intends to use the net proceeds of the private placement means for working capital, including due diligence expenses on potential acquisition opportunities.

The company is engaged in negotiations with the government of Gabon for the purpose of concluding a profit-sharing agreement related to the development of the Konzi oil project. The company has signed a letter of intent (see the company's press release of Sept. 9, 2021), with the Gabonese government. The company has submitted an economic proposal for review by the Ministry of Hydrocarbons and is awaiting their comments. Personnel from the company are planning to be in Gabon early in February to continue negotiations and to conduct further due diligence regarding the Konzi project.

All securities to be issued in connection with the private placement will be subject to a four-month hold period from the closing date under applicable securities laws in Canada. Closing of the private placement is subject to approval of the exchange.

At the closing of this private placement, it is anticipated that the company will have approximately 23 million shares outstanding.

The securities being offered under the private placement have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. federal and state registration or an applicable exemption from the U.S. registration requirements.

We seek Safe Harbor.