Jericho Oil Closes Fully Subscribed $5M Equity Financing for Future Acquisitions
Not for dissemination in the United States or for distribution to U.S. newswire servicesTULSA, Okla. and VANCOUVER, British Columbia, June 12, 2020 (GLOBE NEWSWIRE) — Further to its news release dated April 23, 2020, Jericho Oil Corporation (“Jericho”) (TSX-V: JCO) announces that it has closed a fully subscribed non-brokered private placement (the “Offering”) of 50 million units (the “Units”) at $0.10 CAD per Unit for gross proceeds of $5 Million.
Each Unit is comprised of one Common Share (a “Share”) and one Warrant (a “Warrant”), with each Warrant being exercisable for one additional Common Share at an exercise price of $0.13 CAD for a period of 36 months from the date of issuance.Net proceeds from the Offering, which was led by existing shareholders and insiders, will be used for the acquisition of assets during the current market downturn and working capital. Jericho will seek to acquire what it believes to be high-quality assets in special situations. While Jericho does not currently have any binding agreements to enter into any such transaction, having cash on hand allows it to be nimble as opportunities may present themselves.Brian Williamson, CEO, said, “We are grateful for the strong support of our long term, major investors, who despite these very challenging times, share our belief that the current situation could present tremendous growth opportunities for the Company.” All securities issued pursuant to the Offering are subject to a four month and one day hold period from the date of issuance. As a result, all Shares and Warrants that were issued are subject to a hold period expiring October 13, 2020. The Offering remains subject to final acceptance of the TSX Venture Exchange (“TSX-V“). No finders’ fees or commissions were paid in connection with the Offering.Insiders of Jericho acquired a total of 17,197,023 Units in the Offering (the “Insider Participation“). The Insider Participation is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 Protection of Minority Securityholders in Special Transactions (“MI 61-101“) by virtue of the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 based on that the fair market value of such Insider Participation does not exceed 25% of Jericho’s market capitalization.The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.About Jericho Oil Corporation
Jericho Oil (www.jerichooil.com) is focused on domestic, liquids-rich unconventional resource plays, located primarily in the Anadarko basin STACK play of Oklahoma. Jericho’s primary business objective is driving long-term shareholder value through the growth of oil and gas production, cash flow and reserves. Jericho has assembled a 55,000 net acre position across Oklahoma.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.