PTRVF - Avila Energy Corporation Closes First Tranche of Private Placement
(TheNewswire)
Calgary, Alberta – TheNewswire - June 26, 2024 –Avila Energy Corporation (“ Avila ” or the “ Company ” or“ Avila Energy ”), trading symbol, (CSE: VIK, OTCM: PTRVF and FRA:6HG0), is pleased to announce a closing of its firsttranche of its non-brokered private placement previously announced onJune 14, 2024 (the “ PrivatePlacement ”).
The Company issued 12,293,000 units at a price of $0.03 (the “ Units ”) for gross proceeds of $368,790. Each Unit iscomprised of one common share (each a “ Common Share ”) in the share capital ofthe Company and one-half (1/2) common share purchase warrant (each a“ Warrant ”). Each fullWarrant entitles its holder to purchase one additional common share ata price of $0.12 for a period of 24 months following the closing.
The Company may pay finder’s fees of 8% on aportion of the Private Placement, subject to compliance with thepolicies of the Canadian Securities Exchange (the “ CSE ”) and applicable securities legislation.
Mr. Leonard Van Betuw, CEO and Director and insider of the Companypurchased an aggregate of 5,833,333 Units in the Private Placement. Any participation by insiders in the Private Placement wouldconstitute a "related party transaction" as defined underMultilateral Instrument 61-101 Protection of Minority Security Holdersin Special Transactions (“ MI61-101”). However, the participation is exempt from theformal valuation and minority shareholder approval requirements of MI61-101 as the fair market value of the Units subscribed for by theinsiders, nor the consideration for the Units paid by such insiders,exceeded 25% of the Company’s market capitalization. The Company didnot file a material change report in respect of the related partytransaction at least 21 days prior to the closing of the first trancheof the Private Placement, which the Corporation deems reasonable inthe circumstances in order to close the first tranche of the PrivatePlacement in an expeditious manner.
The proceeds of the Private Placement will be used for general workingcapital purposes. All securities issued pursuant to the PrivatePlacement will be subject to a four-month-and-one day statutory holdperiod in accordance with applicable securities law.
The securities being referred to in this news release have not been,nor will they be, registered under the United States (U.S.) SecuritiesAct of 1933, as amended, and may not be offered or sold in the U.S. orto, or for the account or benefit of, U.S. persons absent registrationor an applicable exemption from the registration requirements. Thisnews release does not constitute an offer to sell or the solicitationof an offer to buy nor shall there be any sale of the securities inany jurisdiction in which such an offer, solicitation or sale would beunlawful.
The Company also issued 7,509,550 as shares for debt with variousarms-length vendors at a price of $0.03 per share.
About Avila Energy Corporation
The Company is an emerging CSE listed corporationtrading under the symbol (‘VIK’), and in combination with an expanding portfolio of 100% Owned and Operated oil and natural gas production, pipelines andfacilities is a licensed producer, explorer, and developer of Energyin Canada. The Company’s long-term vision is to achieve through theimplementation of a closed system of carbon capture and sequestration, an established path towards the material reduction of Tier 1, Tier 2 and Tier 3 emissions and continues to work towardsbecoming a vertically integrated Carbon Neutral EnergyProducer. The Company’s goals are to be achieved by focusing on the application of proven geological, geophysical, engineering, and productiontechniques in combination with the delivery of Direct-to Consumerenergy sales to both residential and commercial consumers.
For further information, please contact:
Leonard B. Van Betuw, President & CEO
Peter Nesveda, Investor Relations, International or
Lars Glimhagen, CFO & Corporate Secretary
Emails:
Leonard B. Van Betuw: leonard.v@avilaenergy.com
Peter Nesveda: peter@intuitiveaustralia.com.au
Lars Glimhagen: lars.g@avilaenergy.com
ON BEHALF OF THE BOARD
Leonard B. Van Betuw
President & CEO
Contact Phone Number: 1-403-451- 2786
Abbreviations
bbls/d - barrels per day
BOE/d - barrels oil equivalent per day NGLs - Natural Gas Liquids
Mboe - Thousands of barrels of oil equivalent MMboe - Millions ofbarrels of oil equivalent PDP - Proved Developed Producing
TP - Total Proved Reserves
TPP - Total Proved and Probable Reserves
IFRS - International Financial Reporting Standards as issued by the International Accounting Standards Board
WTI - West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade
Forward-Looking Information & Forward-Looking Statements Cautionary Statement
Certain information in this news release, including theoperations at the Company’s properties, constitute forward-lookingstatements under applicable securities laws. Although Avila EnergyCorporation believes that the expectations reflected in these forward-looking statements are reasonable, unduereliance should not be placed on them because Avila Energy Corporationcan give no assurance that they will prove to be correct. Sinceforward-looking statements address future events and conditions, bytheir very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this news release are
made as at the date of this news release and theCompany does not undertake any obligation to update publicly or torevise 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 laws. This release includes certain statements that may be deemed “forward-looking statements.” All statements in this release, other thanstatements of historical facts, that address future production,reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward looking statements. Although theCompany believes the expectations expressed in such forward-lookingstatements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in theforward-looking statements. Factors that could cause actual results todiffer materially from those in forward looking statementsinclude market prices, exploitation, andexploration successes, continued availability of capital andfinancing, and general economic, market orbusiness conditions. It should not be assumed that the estimates of net present value offuture net revenue attributable to the Company's reserves presented above represent the fair market value of the reserves. The recovery and reserve estimates of the Company's oil, NGL, andnatural gas reserves provided herein are estimates only and there isno guarantee that the estimated reserves will be recovered. Further,there is no assurance that the forecast prices and costsassumptions will be attained, and variances could be material. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report arecalculated using a conversion of six thousand cubic feet of naturalgas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head. This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in anyjurisdiction in which such offer, solicitation or sale would beunlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registrationor applicable exemption from the registration requirements of the U.S.Securities Act and applicable state securities laws. Trading in thesecurities of Avila Energy Corporation should be considered highlyspeculative. Neither the Canadian Stock Exchange nor its RegulationServices Provider (as that term is defined in the policies of theCanadian Stock Exchange) accepts responsibility for the adequacy oraccuracy of this release. For more information on the Company,Investors should review the Company’s registered filings which areavailable at www.sedar.com.
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