FINANCING / Sharon Energy Ltd. Private Placement
Tuesday January 6, 8:00 pm Eastern Time
Company Press Release
SOURCE: Sharon Energy, Ltd.
Sharon Energy Ltd. Announces Private Placement Financing
ENGLEWOOD, Colo., Jan. 6 /PRNewswire/ -- Sharon Energy Ltd.(Vancouver: SHY - news) reported that it has arranged abrokered private placement with Canaccord Capital Corporation of 3,500,000 Special Warrants at a purchase price of Cdn$0.20. Each Special Warrant will be exchangeable for a unit, for no additional consideration, consisting of one share of the Company's common stock and one Common Stock Purchase Warrant. Two Common Share Purchase Warrants are exercisable to purchase one share of the Company's common stock within six months of subscription at a price of Cdn$0.25 per share. Both the Special Warrants and the Common Share Purchase Warrant will be nontransferable. Sharon Management intends that the exchange of the Special Warrants for shares and Common Stock Purchase Warrants will be qualified by an exchange offering prospectus filed with the VSE and the BC Securities Commission within six months of subscription.
As Lead Agent of the Offering Canaccord will receive a corporate finance fee of 200,000 common shares. There will be a seven percent (7.0%) commission to broker-dealers on sale of all Units sold, as well as issuance of 400,000 Broker's Warrants which allow the holder to purchase one common share of the Company for a period of up to six months at a price of Cdn$0.20 per share.
The net proceeds of the offering to Sharon are expected to be approximately Cdn$651,000 and will be used for work commitments in a new project located in Cameron Parish, Louisiana.
Sharon Energy Ltd. is an oil and gas exploration and production firm headquartered in Englewood, Colorado, with gas properties in
California. Sharon specializes in the application of high-resolution 2-D and 3-D seismic to reduce exploration risk and enhance development opportunity. Sharon trades on the Vancouver Stock Exchange (''SHY''). |
