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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,563.30 -317.06 -1.88%
S&P 500 1,930.67 -39.40 -2.00%
NASDAQ 4,369.7730 -93.1290 -2.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs