FINANCING / Redeco Energy plans Special Warrant Issue
Redeco Energy Inc. today announced that, subject to regulatory approval, it
plans to reserve 15,384,615 special warrants to raise up to approximately $10
million. Redeco owns the oil and gas exploration development rights for the
entire country of Muldova, consisting of 8.3 million acres. The rights are
shared with a joint venture partner Costilla Energy Inc.
Agent for the offering is Roche Securities Ltd., of Edmonton.
Redeco anticipates issuing up to some 15 million special warrants, priced at
$0.65, on a private placement basis. Each special warrant is exercisable
into one common share and one-half of a common share purchase warrant. Each
whole common share purchase warrant entitles the holder to acquire an
additional common share for $1.00 until February 9, 2000.
The Company has undertaken to qualify the common shares to be issued by
filing and receiving receipt for a prospectus within 90 days of the first
closing of the special warrants. In the event that receipts for the
prospectus have not been received in each of the jurisdictions in which the
issue is to be sold, within the 90 day period, purchasers will be entitled to
a 10% bonus for both shares and warrants.
Redeco is an oil and gas exploration and development Company which, with a
joint venture partner, owns the oil and gas exploration rights for the entire
country of Muldova. In addition, with a joint venture partner, its owns an
exploration permit in neighboring Romania.
The Company is listed on the Alberta Stock Exchange under the symbol RE.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gord Noland
Chief Financial Officer (403) 288-0606
Redeco Energy, Inc.
Jon W. Kieran or Olav Svela, Investor Relations (416) 868-1079
Hume, Kieran Inc. |
