CALGARY, ALBERTA--(Marketwired - Jun 19, 2014) - Solimar Energy Limited ("Solimar" or the "Company") (SXS.AX)(TSX VENTURE:SXS) is pleased to announce that, further to its previous announcement dated May 9, 2014 concerning a non-brokered placement, it has issued a further 2,123,077 units ("Units") at a price of C$0.065 per Unit for aggregate gross proceeds of $138,000 (the "Offering"). Each Unit is comprised of one (1) ordinary share of Solimar ("Share") and one half of one (0.5) right ("Right"). As the Issuer has previously obtained shareholder approval pursuant to the ASX rules, immediately thereafter, each Right will be deemed to have been exchanged by the holder thereof, without payment of additional consideration or further action on the part of the holder, for one warrant ("Warrant") to purchase one (1) Share at an exercise price of $0.065 for a 24 month period following closing.
Pursuant to the Offering, Rio Bravo Commercial Enterprise Inc. (the "Offeror") purchased an aggregate of 2,123,077 Units for aggregate consideration of $138,000. Immediately following completion of the Offering, the Offeror had beneficial ownership of, and control and direction over, an aggregate of 6,749,752 Shares, or approximately 9.97% of the Shares outstanding. Immediately following completion of the Offering, the Offeror also had beneficial ownership of 3,369,231 warrants. If such warrants are all exercised, the Offeror would have beneficial ownership of, and control and direction over, 10,118,983 Shares, or approximately 14.24% of the Shares outstanding.
The Offeror acquired the Units for investment purposes. The Offeror intends to review its investment in Solimar on a continuing basis. Depending on various factors including, but not limited to, Solimar's financial position, the market price of the Shares, conditions in the securities markets and general economic and industry conditions, the Offeror's business or financial condition and other factors and conditions the Offeror deems appropriate, the Offeror may in the future take such actions with respect to its investment in Solimar as the Offeror considers appropriate. The Offeror may in the future acquire ownership of, or control and direction over, further Shares. The Units were acquired by the Offeror pursuant to an exemption from the prospectus requirement of applicable securities legislation at Section 2.3 of National Instrument 45-106, based on the net asset value of the Offeror.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.