Petro Vista, Cantrell Close on Private Placement and Farm-Outs
Petro Vista and Cantrell Capital Corp. have announced the completion of a CAD$5,000,000 non-brokered private placement announced on October 6, 2009. The placement consists of the sale of 25,000,000 units ("Units") at a price of CAD$0.20 per unit for gross proceeds to Petro Vista of CAD$5,000,000. Each unit consists of one common share and one common share purchase warrant which is exercisable to purchase one additional common share at a price of C$0.30 per common share until October 9, 2011. The proceeds of the private placement will be used by Petro Vista to fund its on-going operations in Colombia and Brazil and for future property acquisitions.
Of these Units, 9,000,000 units have been issued and the remainder of the Units, being 16,000,000 Units, will be issued upon the approval of the shareholders of Petro Vista. Petro Vista has called an extraordinary general meeting to be held on December 7, 2009 to approve this transaction. The remaining balance of the private placement of CAD$3.2 million was advanced to Petro Vista as a loan pending shareholder approval. This advance was secured with a non-interest bearing convertible promissory note. Petro Vista has also granted to Cantrell a right to have this loan repaid in full through the transfer to Cantrell of a 25% participating interest in Block SSJN-5 located in the Magdalena Basin, Colombia, in the event that Petro Vista does not obtain shareholder approval on or before December 8, 2009. All securities issued in connection with this private placement are subject to a four month hold period in Canada that expires on February 10, 2010.
Petro Vista paid finder's fees related to this transaction consisting of a cash commission of C$300,000 and the issue of 1,500,000 Units.
Prior to the transaction, Cantrell had no beneficial ownership and control over common shares of Petro Vista. After giving effect to the acquisition of the Units, Cantrell beneficially owns or controls a total of 9,000,000 common shares of Petro Vista and 9,000,000 Warrants, representing approximately 12.4% of Petro Vista's issued and outstanding shares on a non-diluted basis or 22.1% of Petro Vista's issued shares calculated on a partially diluted basis assuming the exercise of the Warrants. Provided that Petro Vista's shareholders approve the private placement a further 16,000,000 Units will be issued to Cantrell and Cantrell will own 28.3% of Petro Vista's outstanding shares, or 44.1% on a partially diluted basis assuming exercise of the Warrants.
Cantrell acquired the Units for investment purposes. Although Cantrell has been granted the right to maintain its common shares ownership in Petro Vista through future private placements, Cantrell has no present intention to acquire further securities of Petro Vista, although it may in the future acquire or dispose of securities of Petro Vista through the market, privately or otherwise, as circumstances or market conditions warrant.
Appointment of New Director
Petro Vista wishes to announce the appointment of Gordon Keep to its Board of Directors. Mr. Keep is currently the Executive Vice-President of Fiore Financial Corporation and has extensive business experience in investment banking, and creating public natural resource companies. From April 1987 until October 1997 he was Vice President, Corporate Finance in the Natural Resource group of Yorkton Securities Inc. From September 1997 until March 2004 he was Senior Vice President and Director of Lions Gate Entertainment Corp. Prior to joining Fiore Financial, Mr. Keep was Managing Director of Corporate Finance at Endeavour Financial, from January 2001 to July 2007.
Grant of Stock Options
Petro Vista announces the grant to a director of 150,000 stock options to purchase common shares of Petro Vista at an exercise price of C$0.20 in accordance with the terms of its stock option plan.
- Petro Vista Finalizes Stake in Colombia Block (Feb 07)
- Petro Vista Sells Stake in Morichito Block (Dec 08)
- Petro Vista Commences Testing at Morichito Discovery (Aug 03)