Sonterra Completes Securities Exchange Agreement
Sonterra Resources, Inc. has completed a securities exchange in which it acquired 100% of the outstanding capital stock and other securities of Sonterra Oil & Gas, Inc., a Delaware corporation ("Sonterra O&G"), pursuant to a securities exchange agreement entered into in August 2007 (the "Securities Exchange"). Under the terms of the Securities Exchange, The Longview Fund, L.P. exchanged all of the issued and outstanding shares of common stock of Sonterra O&G, an equity note from Sonterra O&G and a warrant to purchase shares of Sonterra O&G common stock for 21,846,558 shares of the Company's common stock and a warrant to purchase 4,958,678 shares of the Company's common stock. Longview also exchanged a $2 million note from Sonterra O&G for a $2 million senior secured note issued by the Company. C.K. Cooper & Company of Irvine, California served as financial advisor to the Company.