Return Energy Inc. ("Return" or the "Company") (TSX-V: "RTN") is pleased to announce that it has closed an initial tranche of its previously announced non-brokered private placement comprised of common share units (the "Units") and Canadian exploration expense flow-through shares ("CEE FTS") (collectively, the "Offering").
Under this tranche of the Offering, Return issued 16,700,399 Units at a price of $0.12 per Unit for aggregate gross proceeds of $2,004,047.88, as well as 715,000 CEE FTS at a price of $0.14 per CEE FTS for aggregate gross proceeds of $100,000 for total gross proceeds under this tranche of the Offering of $2,104,147.88.
Each Unit issued consisted of one Return common share ("Common Share") and one full Common Share purchase warrant ("Warrant"). Each whole Warrant is exercisable by the holder to purchase one Common Share for a period of 12 months from the Closing Date ("Warrant Exercise Period") at a price of $0.15 ("Warrant Exercise Price"). The Warrants are subject to an Accelerated Warrant Expiry (defined below). The CEE FTS were issued pursuant to the Income Tax Act (Canada) in respect of Canadian exploration expenses.
Each Warrant will entitle the holder thereof to purchase one Common Share at any time prior to 5:00 p.m. (Calgary Time) on or before the earlier of the date that is: (a) one year from the completion of the Offering; and (b) 30 days after the giving of notice of early termination by Return. Such notice may be given by the Company, in its sole discretion, if the volume-weighted average price of the Common Shares on the TSX Venture Exchange exceeds the Warrant Exercise Price by at least 200% for a minimum of 10 consecutive trading days (whether or not trading of Common Shares occurs on all such days, provided that the Common Shares trade on at least five of such trading days).
The proceeds of this issuance will be used by Return to further its development activities in the Rycroft, Gordondale, Valhalla areas of Alberta.
The non-brokered private placement remains open and the Company may close additional tranches under this Offering. The completion of the Offering is subject to the Company receiving all necessary regulatory approvals, including final approval from the TSX Venture Exchange.
For further information
This news release is reproduced on Return's website at www.returnenergyinc.com.
SOURCE: Return Energy Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.