Calgary, Alberta – TheNewswire – Sonoro Energy Ltd (the “Corporation “or “Sonoro”) (TSXV:SNV), has implemented a warrant exercise incentive program designed to encourage the early exercise of up to 26,207,247 of its outstanding unlisted warrants exercisable for common shares of the company. The warrants are currently exercisable at a price of $0.10 per common share until December 30, 2020. The warrants will be repriced by the Corporation to $0.075 per common share for a period of four weeks.
The program will commence September 7, 2020, and expire on October 6, 2020.
Under the incentive program, the Corporation is offering an inducement to each warrant-holder that exercises their warrants prior to October 6, 2020. All warrants exercised prior to this date will be issued one additional share purchase warrant for each warrant exercised. Each new warrant will entitle the holder to purchase one additional common share with identical terms as the incentive program warrants. Specifically, current holders who exercise under the early incentive program will receive a $0.075 warrant with a current expiry of December 30, 2020, unless extended. The warrant will also have an acceleration clause whereby if the closing price of the common shares of the Company is equal to or exceed C$0.15 for 10 consecutive trading days, the warrant expiry date shall accelerate to a date 20 calendar days from such event. Any common shares issued via the new incentive warrants will be subject to a four-month hold period from the date of issuance.
On October 7, 2020 the incentive warrant program will end and all warrants not exercised will revert back to the original terms and conditions or at an exercise price of 10 cents per share.
If all of the warrants are exercised during the early exercise period, Sonoro would:
-Receive gross proceeds of $1,965,544 on or before the early exercise expiry date;
-Issue 26.2 million common shares pursuant to the exercise of the warrants by holders in accordance with the original terms of the warrants;
-Issue 26.2 million incentive warrants to warrant-holders pursuant to the early exercise of the warrants on or before the early exercise expiry date.
The terms and conditions of the program and the method of exercising warrants pursuant to the program will be set forth in a letter/email to be mailed to each warrant-holder.
Holders of warrants who elect to participate in the program will be required to deliver the following to the company on or prior to October 7, 2020:
-A duly completed and executed exercise form, in the form which accompanies the certificate representing the warrants;
-The original certificate representing the warrants being exercised, of which the Corporation is currently holding;
-The applicable aggregate exercise price payable to the company by way of certified cheque, money order, bank draft or wire transfer in Canadian or US dollars.
To the extent that holders of the warrants take advantage of the opportunity to exercise their Warrants early, this will strengthen Sonoro’s current cash position.
The transaction is subject to the receipt of all final regulatory approvals, including the approval of the TSX Venture Exchange. Any warrants that are not exercised prior to the early exercise expiry date will remain outstanding and continue to be exercisable for common shares on their existing terms.
The warrants were originally issued by the company as part of a unit of the company in connection with a private placement financing completed on March 26, 2018.
The Corporation has also issued 2,900,000 options at $0.06 as per the terms and conditions of Sonoro’s option plan, for distribution to management, employees, directors and consultants.
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may,” “should,” “anticipate,” “expects,” “estimates,” “seeks” and similar expressions. In particular, without limiting the generality of the foregoing, this news release contains forward-looking information regarding the PSC.
Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals, changes in legislation including but not limited to income tax, environmental laws and regulatory matters, and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Additional information on these and other factors that could affect Sonoro’s operations or financial results are included in Sonoro’s reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or by contacting Sonoro. The forward looking statements contained in this news release are made as of the date of this news release and Sonoro does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Sonoro Energy Ltd.
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