/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S./
TORONTO, March 19, 2012 /PRNewswire/ - Sintana Energy Inc. (" Sintana" or the " Corporation") (TSX-V: "SNN") and ColCan Energy Corp. (" ColCan") are pleased to announce that ColCan has entered into an agreement with a syndicate of agents co-led by Canaccord Genuity Corp. and Cormark Securities Inc. and including Casimir Capital Ltd., and Clarus Capital Ltd. (collectively, the " Agents") for an offering of subscription receipts (" Subscription Receipts") of ColCan on a best efforts private placement basis pursuant to applicable private placement exemptions under applicable securities laws (the " Offering"). The Subscription Receipts will be offered at a price of $0.30 per Subscription Receipt for aggregate minimum gross proceeds of $11 million.
Each Subscription Receipt will represent the right to automatically receive one (1) common share in the capital of ColCan (" ColCan Share") immediately prior to the completion of the business combination between Sintana and ColCan, previously announced on March 13, 2012 (the " Transaction"). On completion of the Transaction, each of the ColCan Shares (including those issuable pursuant to conversion of the Subscription Receipts under the Offering) will be exchanged for one and a half (1.5) common shares (" Sintana Shares") in the capital of Sintana. It is expected that the Sintana Shares issuable in connection with the Transaction (including those issued in connection with the ColCan Subscription Receipts) will be freely tradable on closing of the Transaction. The net proceeds of the Offering will be used by the combined company to fund its capital expenditure program in South America and for general corporate purposes.
The Subscription Receipts will be issued pursuant to the terms of a subscription receipt agreement and the gross proceeds of the Offering will be held in escrow by an escrow agent. Each Subscription Receipt will automatically be exchanged, without payment of any additional consideration or further action on the part of the holder thereof, into one (1) ColCan Share upon delivery of a notice to the escrow agent that the escrow release conditions have been satisfied, including the receipt of all necessary approvals.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV