SNVFF - Sonoro Energy Closes Private Placement and Provides an Update on Activities in Indonesia
(TheNewswire)
May 31, 2021 - TheNewswire - Calgary, Alberta - Sonoro Energy Ltd. (“Sonoro” or the “Company”)(TSXV:SNV) (OTC:SNVFF) announces that it has completed the previously announcednon-brokered private placement of common share/warrant unit financingto support ongoing activities in Indonesia. Sonoro will issue7,000,000 units for total proceeds of $350,000 Each unit consists ofone $0.05 common share (a “Common Share”) and one common sharepurchase warrant (a “Warrant”) of the Company, where each wholeWarrant entitles the holder to purchase one Common Share within twoyears at a price of $0.10 per Common Share.
Sonoro will use the proceeds of the funding for thirdparty technical studies to improve the geological and reservoir modelof the Pematang reservoirs within the Selat Panjang project area inSumatra, Indonesia and general working capital purpose. Certainsubscriptions will also be used to extinguish existing debtobligations on the balance sheet. Managementand Insiders will be subscribing for a large portion of the privateplacement.
Mr. David Kirk, the CEO of Sonoro commented that“this funding enables the company to complete important technicalstudies, continue to fulfill our commitments and to progresscommercial negotiations with our Joint Venture Partner. It is notedthat the Resource Report commissioned with RISC Advisory Pty Limited,had been delayed as we reviewed the inputs to the study and engagedwith RISC to address any deficiencies in data provided by the company.That process is ongoing and is expected to be completed shortly.Discussions with our Joint Venture Partner have been challenging in anenvironment of restricted contacts due to Covid 19. Despite that, wecontinue to explore multiple options to resolve outstanding issues andhave every reason to believe in a successful outcome”.
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$0.20 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 Securityholder and RetailInvestor Exemptions”.
All securities issued in connection with the Offeringwill be subject to a four month hold period from the date of issuanceof such securities. The Company confirms that there is no materialfact or material change related to the Company which has not beengenerally disclosed.
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 PSC.
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 please contact:
Sonoro Energy Ltd.
+1.403.262.3252
www.sonoroenergy.com
This press releaseis not to be disseminated in the United States
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