Vancouver, British Columbia--(Newsfile Corp. - May 15, 2017) - Molori Energy Inc. (TSXV: MOL) (OTCQB: MOLOF) ("Molori" or the "Company") is pleased to announce the closing of a non-brokered private placement offering (the "Private Placement") announced on April 11, 2017.
The Private Placement closed at 7,000,360 units ("Units") at a price of $0.30 per Unit for a total of $2,100,108.
Each Unit will be comprised of one common share and and half common share purchase warrant. Each full warrant gives the holder the right to purchase one additional common share of Molori at an exercise price of $0.50 for two years following the closing of the Private Placement. The term of the warrants may be accelerated in the event that the issuer's shares trade at or above a price of $1.00 per share for a period of 20 consecutive days. In such case of accelerated warrants, the issuer may give notice, in writing or by way of news release, to the subscribers that the warrants will expire 45 days from the date of providing such notice.
In connection with the closing of the Private Placement, the Company paid cash finders' fees equal to 7% of the proceeds and issued finders' warrants equal to 7% of the number of Units sold. The finders' warrants have the same terms as the warrants forming part of the Units. All securities issued pursuant to the Private Placement will be subject to a statutory four-month hold period.
The net proceeds from the placement are partly intended to finance the completion of the purchase of a 25% working interest in an additional 24 leases presently owned by Molori's Texas-based partner Ponderosa Energy Inc. (see March 3, 2017 press release). In addition, capital will be applied to funding the next stage of Molori's growth in production via its continuing workover program. Finally, the Company along with Ponderosa plan in the next 60 days, a first test of the Red Cave formation upon recently optioned acreage in Moore County, Texas.
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. This giant field was discovered in 1910 and expanded three years later to create one of the US largest gas fields. The experienced management team at Molori is aggressively acquiring select properties which provide immediate cash flow and development opportunities, now and in the years ahead. Molori is seizing the opportunity, in the current oil & gas environment, to assemble oil and gas production in nearby and politically safe jurisdictions.
CEO and Director
Molori Energy Inc.
(604) 336 3193
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Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements are statements that relate to future events. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our industry, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.