Canacol Energy Ltd. Announces Final Release of Funds for the Strategic Investment from Cavengas Holdings S.R.L. and New Directors
OREANDA-NEWS. Further to its news release of September 3, 2015, Canacol Energy Ltd. ("Canacol" or the "Corporation ) (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to announce that the release condition for the final Cavengas Holdings S.R.L. ("Cavengas") subscription has been satisfied and the 17,590,000 subscription receipts of Canacol (a "Subscription Receipt") issued at C$͖.5͔ per Subscription Receipt will be immediately converted into 17,590,000 common sh ares of the Corporation("Common Shares"). In connection with the conversion of the Subscription Receipts to Common Shares, funds in the amount of C$43,975,000 will be released to Canacol by the subscription receipt agent.
Charle Gamba, President and CEO of Canacol, commented "We are very pleased to have Mr. Cisneros and Mr. Sosa join the board of Canacol. Both are consummate businessmen whom will broaden the depth of the board of directors, and leverage their extensive relationships in South America to bring new projects to the Corporation’s portfolio".
Cavengas has made a strategic equity investment of a total of $78,985,000 in Canacol, and Cavengas will now hold a 19,9% ownership stake in the Corporation on a non-diluted basis.
The Common Shares issued in connection with the Investment are subject to a four-month hold period until January 3, 2016. On September 30, 2015, Canacol pre-paid US$20 million on its BNP Paribas led senior secured term loan, being approximately one-third (1/3) of the proceeds from the Investment Amount. The remaining two- thirds of the proceeds will be used for the Corporation’s capital program an d general corporate purposes.
The Corporation engaged Horizon Capital Management Inc. as the exclusive advisor for this transaction.
Canacol is an exploration and production company with operations focused in Col ombia and Ecuador. The Corporation's common stock trades on the TSX, the OTCQX in the United States of America, and the Colombia Stock Exchange under ticker symbols CNE, CNNEF, and CNEC, respectively.
Cavengas Holdings S.R.L is a Barbados-based private investment company with a focus on the e nergy and mining industries. Prior to the Investment, Cavengas did not beneficially own or co ntrol any securities of the Corporation. Cavengas acquired the Common Shares for investment purposes, and Cavengas may acquir e ownership or control over further securities of the Corporation in the future depe nding upon market circumstances. Such increase in ownership will depend on numerous conditions, including the price of the Common Shares and general market conditions.