SNV:CC - Sonoro Energy Announces Financing and Provides Update on WCSB Farm-In
(TheNewswire)
Calgary, Alberta – TheNewswire – August 25, 2023 - Sonoro Energy Ltd. (“Sonoro” or the“Company”) (TSXV:SNV.H) announces itsintention to complete a non-brokered private placement commonshare/warrant unit financing to support ongoing activities relating toits previously announced Western Canadian Sedimentary Basin(“WCSB”) Farm-In Agreement (the “Agreement”), generalcorporate purposes and pursuit of international oil and gasopportunities.
Sonoro intends to raise up to CAD$2,000,000 for a totalof up to 33.33 million units comprised of one $0.06 common share (a“Common Share”) and one common share purchase warrant (a“Warrant”) of the Company, where each whole Warrant entitles theholder to purchase one Common Share within two years at a price of$0.12 per Common Share. The securities issued in connection with theOffering will be subject to a four month and one day hold period fromthe date of issuance of such securities.
As part of this non-brokered financing, warrants aresubject to an acceleration clause. This clause states that if, fourmonths and one day after the warrants are issued, the closing price ofthe common shares of the Corporation, on the principal market on whichsuch shares trade, is equal to, or exceeds, C$0.15 for 10 consecutivetrading days (with the 10th such trading date hereafter referred to asthe “Eligible Acceleration Date”), the warrant expiry date shallaccelerate to a date 20 calendar days after issuance of a pressrelease by the Corporation announcing the reduced warrantterm—provided, no more than five business days following theEligible Acceleration Date, that, the press release is issued; andnotices are sent to all warrant holders.
The Offering is being made pursuant to certain Canadianprospectus exemptions, including the “existing securityholder”exemption and “purchasers advised by investment dealers”exemption, where applicable. Both the “existing securityholder”and “purchasers advised by investment dealers” exemptions arecollectively referred to as the “Existing Security holder and RetailInvestor Exemptions”. Existing shareholders of the Company whowish to subscribe for Units pursuant to the Offering and who arepermitted to subscribe under the “existing securityholder”exemption should contact the Company pursuant to the contactinformation set forth below in order to participate in the Offering.
The Offering is expected to close on or about September1, 2023 (the “Closing Date”) but may close earlier or later or notat all. Closing of the Offering is also subject to NEX and TSXVenture final acceptance.
As a further update to the Agreement and ongoingoperations to commence drilling of the first test well, Sonoro hasacquired surface access along with surveys and will be shortlyapplying to the regulator to license the locations. The drillingprogram has been finalized, long lead items secured and upon grantingof the drilling license, lease construction will commence followed bya drilling rig mobilized to site with spudding of the well expectedprior to September 30, 2023 meeting the Farm-In Agreementcondition.
Forward-lookingStatements
Certain information in this news release constitutesforward-looking statements under applicable securities laws. Anystatements that are contained in this news release that are notstatements of historical fact may be deemed to be forward-lookingstatements. Forward-looking statements are often identified by termssuch as "may," "should," "anticipate,""expects," "estimates," "seeks" andsimilar expressions. In particular, without limiting the generality ofthe foregoing, this news release contains forward-looking informationregarding the opportunities discussed.
Forward-looking statements necessarily involve knownand unknown risks, including, without limitation, risks associatedwith oil and gas exploration, development, exploitation, production,marketing and transportation, loss of markets, volatility of commodityprices, currency fluctuations, imprecision of reserve estimates,environmental risks, competition from other producers, inability toretain drilling rigs and other services, delays resulting from orinability to obtain required regulatory approvals, changes inlegislation including but not limited to income tax, environmentallaws and regulatory matters, and ability to access sufficient capitalfrom internal and external sources. Readers are cautioned that theforegoing list of factors is not exhaustive.
Readers are cautioned not to place undue reliance onforward-looking statements as there can be no assurance that theplans, intentions or expectations upon which they are placed willoccur. Such information, although considered reasonable by managementat the time of preparation, may prove to be incorrect and actualresults may differ materially from those anticipated. Forward-lookingstatements contained in this news release are expressly qualified bythis cautionary statement.
Additional information on these and other factors thatcould affect Sonoro's operations or financial results are included inSonoro’s reports on file with Canadian securities regulatoryauthorities and may be accessed through the SEDAR website(www.sedar.com) or by contacting Sonoro. The forward-lookingstatements contained in this news release are made as of the date ofthis news release and Sonoro does not undertake any obligation toupdate publicly or to revise any of the included forward-lookingstatements, whether as a result of new information, future events orotherwise, except as expressly required by securities law.
Neither the TSXVenture Exchange nor its Regulation Service Provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of thisrelease .
For further information to participate in futurefinancing, please contact the company at:
Sonoro Energy Ltd.
Dean Callaway, CFO and Director
or
+1.403.262.3252
This press releaseis not to be disseminated in the United States
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