La Cortez Energy has successfully completed its private placement offering for a total of 5,065,000 Units of its securities to institutional and accredited investors and non-U.S. persons for aggregate gross proceeds of US $6,331,250, at an offering price of US $1.25 per Unit. Each unit consists of (i) one share of common stock of the Company and (ii) a common stock purchase warrant to purchase one share of common stock, exercisable for a period of five years at an exercise price of US $2.00 per share.
The Company entered into a registration rights agreement with the investors purchasing Units in the Offering. The registration rights agreement requires that the Company prepare and file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-1 covering the resale of all shares of Common Stock issued in the Offering. Shares of Common Stock underlying the Warrants included in the Units carry "piggyback" registration rights. The registration rights agreement provides certain deadlines for the filing and effectiveness of the registration statement, including that the registration statement be declared effective by the SEC within 240 days after the final closing of the Offering.
The Company plans to use the net proceeds of the Offering to continue developing its working interests in the Maranta and Putumayo 4 blocks in Colombia, to fund other potential oil and gas exploration and production opportunities in Colombia and in Peru (e.g., acquisitions, joint ventures, and/or farm-ins) and for general working capital purposes.
Andres Gutierrez, President and CEO of La Cortez commented on the announcement, "We are very pleased to announce the final closing of this private placement. We are very happy with the results of our ability to raise capital in these tumultuous times. It reflects a vote of confidence in the La Cortez executive team and the ability of our Board of Directors to successfully execute the Company's strategic plan. We remain attentive to other opportunities in a variety of basins in Colombia and in Peru that we believe have opportunities to allow La Cortez to build our production base and benefit from upside exploration."
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