Sonoro Energy Closes Second Tranche Of Non-Brokered Private Placement
With total proceeds of CAD$3.6M, Sonoro prepares to drill Budong Budong well in Indonesia
Sonoro Energy Ltd. (“Sonoro” or the “Company”) is pleased to announce the closing of the second tranche (the “Second Tranche”) of its non-brokered private placement for total gross proceeds of $901,360 further to its April 27, 2017 news release. Combined with the closing of the first tranche of its non-brokered private placement, Sonoro raised a total of CAD$3,600,000 in gross proceeds (the “Offering”).
The company sold 30,045,333 Units in respect of the closing of the Second Tranche. In total for the Offering, the Company sold 119,999,997 units (a “Unit”) at a price of $0.03 per Unit, where each Unit consists of one common share (a “Common Share”) of the Company and one half of one common share purchase warrant (a “Warrant”) of the Company, where each whole Warrant entitles the holder to purchase one Common Share within two years of each respective tranche closing date at a price of $0.05 per Common Share.
Closing of the Second Tranche is subject to final TSX Venture Exchange approval. The Common Shares and Warrants issued in connection with the Second Tranche are subject to a four-month hold period.
The Company paid finders' fees in connection with the closing of the Second Tranche in the amount of $27,825 plus 927,500 warrants, and in the aggregate amount for the Offering of $131,339 plus 4,284,945 Warrants, where each Warrant entitles the holder to purchase one Common Share within two years from the respective tranche closing date at $0.05 per Common Share.
The Second Tranche closing is being made pursuant to a waiver granted by the TSX Venture Exchange (“TSX Venture”), which permits the Company to offer the Units at a price below the TSX Venture’s $0.05 minimum pricing requirement pursuant to the TSX Venture bulletin dated April 7, 2014. The Company has undertaken to the TSX Venture Exchange to conduct a consolidation of the Company’s Common Shares within six months of the closing date in accordance with the requirements of the TSX Venture.
The proceeds for both tranches are intended to be used primarily to fund the drilling of the Budong Budong appraisal well, in West Sulawesi, Indonesia, with planning for drilling commencement in August 2017, and for general corporate purposes as previously described under “Use of Proceeds” in the Company’s April 4, 2017 news release.
With the closing of the Second Tranche, Sonoro now has 177,314,463 Common Shares outstanding, and 64,284,944 warrants outstanding. Sonoro’s Common Shares trade on the TSX Venture Exchange under the symbol SNV.
About Sonoro Energy
Sonoro Energy is an international oil and gas resource exploration and development company with a focus on Southeast Asia and its onshore Budong Budong production sharing contract in Sulawesi, Indonesia. The Company has commenced planning for a one to two well appraisal drilling program on the Budong Budong license offsetting the LG-1 well.
Source: Sonoro Energy