PETROAMERICA ANNOUNCES CLOSING OF BOUGHT DEAL FINANCING
CALGARY, Nov. 17 /CNW/ - Petroamerica Oil Corp. (TSXV:PTA) ("Petroamerica" or the "Company") is very pleased to announce it has completed its previously announced bought deal financing of 62,500,000 units of the Company ("Units"), each Unit consisting of one common share in the capital of the Company ("Common Share") and one half of one common share purchase warrant (each whole common share purchase warrant being a "Warrant"), at a price of $0.40 per Unit (the "Offering"). Each Warrant is exercisable for one Common Share at a price of $0.60 until November 17, 2012. The syndicate of underwriters was led by Raymond James Ltd. and included GMP Securities L.P., Haywood Securities Inc., Canaccord Genuity Corp. and Jennings Capital Inc. (collectively, the "Underwriters").
In addition, the Underwriters exercised their option to purchase up to an additional 9,375,000 Units at the same price and upon the same terms as the Offering for additional gross proceeds of $3,750,000. As a result of the foregoing, a total of 71,875,000 Units were issued for total gross proceeds of $28,750,000.
The net proceeds from the Offering will be used to fund the exploration and development of the Company's petroleum assets in Colombia and for general business development, acquisitions and working capital purposes.
Petroamerica is a junior oil and gas company operating in Colombia and its shares are listed on the TSX Venture Exchange under the symbol "PTA". The Warrants will be listed on the TSX Venture Exchange under the symbol "PTA.WT.A".
Forward Looking Statements:
This news release includes forward-looking statements. More particularly, this news release contains statements concerning the use of proceeds of the Offering. The forward-looking statements contained in this document, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated developments and although the Company believes that the expectations represented by such a forward-looking statements are reasonable, undue reliance should not be placed on the forward-looking statements because there can be no assurance that such expectations will be realized. Neither the Company nor any of its subsidiaries nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.
The forward-looking statements contained in this document are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the 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.
For further information:
A. Paul Kroshko
President and CEO
Petroamerica Oil Corp.
Tel: 403-237-8300
Email: [email protected]
or
Colin Wagner
CFO
Petroamerica Oil Corp.
Tel: 403-237-8300
Email: [email protected]
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