This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

American Eagle Energy Announces $4.0 Million Private Equity Placement

LITTLETON, Colo., Jan. 8, 2013  /PRNewswire/ -- American Eagle Energy Corporation (OTCQX: AMZG; "American Eagle" or the "Company") is pleased to announce the sale of 4,000,000 shares of its restricted common stock to Power Energy Holdings LLC.  The purchase price was $1.00 per share and the transaction closed on January 4, 2013.  The per-share sale price represents an approximate 22% premium to the December 31, 2012 closing price of American Eagle's common stock.   

In two other separate agreements, American Eagle granted options to Power Energy Partners LP, an affiliate of Power Energy Holdings LLC, to purchase 10% of either or both of the two Spyglass Property acquisitions, one of which was announced on January 3 and the other of which was announced yesterday.  Each option expires on March 29, 2013, and each contains the same pricing and proportionate ownership terms and conditions of the acquisitions to which the Company is subject.  If Power Energy Partners exercises each option, American Eagle will retain 90% of the assets that it acquired on December 28, 2012 (and announced on January 3, 2013), and 45% of the total assets acquired on January 4, 2013 (and announced yesterday), with the remainder being owned by the Company's Spyglass Property area non-operating joint venture partner, who acquired that 45% interest in the January 4, 2013, transaction.

"I am delighted that Power Energy has invested directly into American Eagle, especially at a price that represents a premium to the market.  Their actions both strengthen our balance sheet and underscore management's belief that our stock has been undervalued for a significant period of time," stated Brad Colby, American Eagle's President.  Colby continued, "We are also pleased that Power Energy's acceptance of the 10% acquisition options reinforces our valuation of the two recently announced acquisitions in a group of derisked properties."

The shares of common stock have not been registered under the Securities Act of 1933.  Accordingly, they may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy the common stock.  The private placement was made by American Eagle without a selling agent and the opportunity to participate in the private placement was available only to Power Energy Holdings, an accredited investor.  This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

About American Eagle Energy Corporation:

American Eagle Energy Corporation is engaged in the exploration and production of petroleum and natural gas in North America.  Currently, American Eagle is focused primarily on exploiting unconventional resource plays within the Bakken and Three Forks formations.  The Company operated under the name Eternal Energy Corp. until December 2011 when it changed its name to American Eagle Energy Corporation upon its acquisition of American Eagle Energy Inc., another oil and gas company engaged in a similar business with which the Company shared certain properties and prospects.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements.  Certain information included in this press release contains statements that are forward-looking, such as statements relating to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, potential contracts, and/or aspects of litigation.  Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of American Eagle Energy Corporation.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs