|Fri Mar 7, 2014|
Oracle Energy Corp. Announces Closing Of Share Exchange
|Vancouver, British Columbia, Oracle Energy Corp. (the "Company") or ("Oracle") (TSX.V: OEC) (Frankfurt: O2E) is pleased to announce that further to the Company's news release of January 31, 2014, the Company announces that it has closed its securities exchange with Global Resources Investment Trust plc ("GRIT"). |
The Company issued 9,000,000 common shares at $CDN0.10 per share to GRIT, in exchange for 473,029 ordinary shares of GRIT (the "GRIT Shares"), at the deemed price of £1.00 per GRIT Share. The securities issued to GRIT are subject to resale restrictions expiring July 8, 2014.
The Company will now seek to sell the GRIT Shares through the facilities of the London Stock Exchange. During the first six months, all sales of GRIT Shares will be arranged by GRIT. While the Company will seek to maximize the proceeds it receives from the sale of its GRIT Shares, there is no assurance as to the timing of disposition or the amount that will be realized. Funds realized from the sale of the GRIT Shares will be used by the Company for working capital and for new project development.
The GRIT Shares were distributed pursuant to a prospectus published by GRIT in the UK on February 28, 2014. GRIT's application to list its ordinary shares on the premium listing segment of the Official List and to trade on the London Stock Exchange's main market became effective today. GRIT's distribution of the GRIT Shares to the Company and other Canadian based issuers was also made pursuant to a discretionary exemption order granted by the Ontario and British Columbia Securities Commissions by order dated November 13, 2013.
GRIT has been established to exploit investment opportunities in the junior mining and natural resources sectors worldwide, with an investment objective to generate medium and long-term capital growth. GRIT has conducted share exchange transactions with 41 junior resource companies (32 headquartered in Canada), acquiring an initial portfolio of their securities in exchange for 39,520,012 ordinary shares having a deemed value of £39,520,012 (approximately C$73,250,000).
A finder's fee of $25,000 in cash and 500,000 shares of the Company is payable, subject to TSX Venture Exchange approval.
Oracle is continuing to focus on acquisitions in Africa and particularly in Nigeria's oil sector as a source of growth. According to the CIA fact book, as of January 2013, Nigeria has proven oil reserves in excess of 37 billion barrels, the 10th largest oil reserves in the world. The industry in Nigeria is currently undergoing a transition with ownership of exploration and producing assets passing from major international oil companies to Nigerian companies. As described in previous news releases, Oracle has signed Memoranda of Understanding with two Nigerian companies, both of which are owned and managed by Nigerians with senior management level experience working for major international oil companies and significant regulatory experience.
Oracle's Chairman Nasim Tyab says "Oracle sees significant opportunity in Nigeria for our Africa experienced management team and our Nigerian partners to acquire attractive assets and create shareholder value. This financing strengthens Oracle's balance sheet and allows access of funds over time to execute our business plan.
About Oracle Energy Corp.
Oracle Energy Corp. (TSX.V: OEC) (Frankfurt: O2E) is a Canadian oil and gas company focused on growth and shareholder value creation through exploration, development, and production in Africa - initially Nigeria. Our three pronged strategy is a focus on: capture of the best opportunities, best-in-class execution, and critical assessment and mitigation of risk. For more information on Oracle Energy visit www.OracleEnergy.com
ON BEHALF OF THE BOARD
Nasim Tyab, Chairman and CEO
Oracle Energy Corp.
Neither the 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.
Certain statements set out in this News Release constitute forward-looking statements. Forward-looking statements (i) are often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate", or "will", and similar expressions; (ii) are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. In particular there is no assurance that the Company will realize at least £1.00 per GRIT Share upon the sale thereof, or that the Company will realize proceeds from the sale of the GRIT Shares in a timely manner.
You can view the Next News Releases item: Wed Apr 2, 2014, Oracle Energy Corp. Announces New CEO and Two New Independent Directors
You can view the Previous News Releases item: Fri Jan 31, 2014, Oracle Energy Corp. Update on Global Resource Investments Ltd.
You can return to the main News Releases page, or press the Back button on your browser.