Sintana Announces $10 Million Marketed Public Offering of Units
February 01 2022 - 8:12AM
Sintana Energy Inc. (TSXV: SEI) (the "
Sintana" or
"
Company") is pleased to announce that further to
its press release dated January 20, 2022, it has filed a
preliminary short form prospectus with the securities commissions
or similar regulatory authorities in each of the provinces of
Canada, other than Quebec (the “
Canadian
Jurisdictions”), in connection with a marketed public
offering (the “
Offering”) of units (the
“
Units”) of the Company, at a price of $0.15 per
Unit, for gross proceeds of a minimum of $7,000,000 and a maximum
of $10,000,000 (subject to increase pursuant to an over-allotment
option to raise up to an additional $1,500,000). The preliminary
short form prospectus 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, for future strategic acquisitions and for working
capital and general corporate purposes.
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 the approval of the securities regulatory
authorities and the TSXV.
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 Sintana
Energy Inc.The 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 ContactDouglas 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, 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 are 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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