CLAREN ENERGY CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT
Claren Energy Corp.(CEN.V) has closed the final tranche of its previously announced non-brokered private-placement financing (see news release Nov. 30, 2016) by issuing a total of 2,512,500 units at a price of eight cents per unit for gross proceeds of $201,000. In total, Claren has issued 27,559,000 units for gross proceeds of $2,204,720 under the entire private-placement financing.
Each unit comprises one common share of Claren and one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at 15 cents per share for a period of two years from the date of the issue. Claren will have the right to accelerate the expiry date of the warrants if, at any time, the average closing price of Claren's common shares is equal to or greater than 25 cents for 10 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after Claren issues a news release announcing that it has elected to exercise this acceleration right.
The securities issued under this tranche of the financing will be subject to a hold period expiring on April 23, 2017, pursuant to applicable securities laws and the rules of the TSX Venture Exchange.
Proceeds of the financing will be used to carry out Claren's phase 2 work program on the Bobocu licence onshore Romania and for working capital purposes.
"We would like to thank Haywood Securities, our existing and new shareholders for their support. We are excited by the progress of our ongoing drilling campaign in Romania, and look forward to releasing results in the near future," stated Henry Aldorf, Claren's chairman and chief executive officer.
About Claren Energy
Claren Energy is an oil and gas company with a right to acquire up to an 80-per-cent participating interest in the Bobocu licence in Romania. Claren also has a 51.49-per-cent working interest in two onshore petroleum exploration licences, being PEL 112 and PEL 444, including a 1.47-per-cent gross overriding royalty interest on the PELs, located on the western flank of the Cooper Eromanga basin in the state of South Australia, Australia.