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Porto Energy Signs a Non-Binding Term Sheet for a US$15 Million Convertible Promissory Note Financing and Provides Operational Update
THE WOODLANDS, TX , March 13, 2014 /CNW/ - Porto Energy Corp., ("Porto") (TSXV:PEC), tod...
About this update from Peak Discovery Capital Ltd
[{"type":"text","content":"\n\n\nTHE WOODLANDS, TX, March 13, 2014 /CNW/ - Porto Energy Corp., (\"Porto\")\n (TSXV:PEC), today announced that Porto and its wholly-owned subsidiary\n Mohave Oil and Gas Corporation (\"Mohave\" or the \"Company\") have entered\n into a non-binding term sheet (the \"Agreement\") with Integrity Growth\n Capital LLC (the \"Lead Investor Representative\") on behalf of\n accredited investors, for a private placement of senior unsecured\n convertible promissory notes (the \"Notes\") in the principal minimum\n amount of US$10 million and up to US$15 million (the \"Financing\"). The\n proceeds from the Financing will be used to drill, test and complete\n one Lias unconventional resource well and for other corporate purposes\n as determined by a Committee of the holders of Notes.\n\n\nThe Notes will be convertible into Mohave common stock.  The applicable\n conversion rate of each Note shall be determined in a manner such that\n the holders of the Notes, in the aggregate, will own ninety percent\n (90%) of the outstanding voting capital stock of Mohave at the time of\n the conversion. The remaining 10% of the Company at the time of the\n conversion will be owned by Porto.\n\n\nThe closing of the Financing is expected to occur on or before May 31,\n 2014 and, if successful, is subject the negotiation and execution of\n definitive agreements, board approval, the approval of Porto\n shareholders and regulatory approval including the satisfaction of\n customary conditions of the TSXV.  Porto is no longer pursuing the\n non-brokered private placement announced in its press release dated\n November 12, 2013.\n\n\nIn connection with the Company's seismic data sales agreement with\n TGS-NOPEC Geophysical Company ASA as disclosed in its press release\n dated January 29, 2014, approval from the Portuguese government has yet\n to be received.  Management anticipates receiving this approval soon.\n\n\nPorto's common shares trade on the TSX Venture Exchange under the symbol\n PEC. Porto currently has 198,954,653 common shares outstanding.  The\n Company currently has $500,000 in cash.\n\n\nAbout Porto Energy Corp.\n\n\nPorto Energy Corp. is an international oil and gas company engaged in\n the exploration of crude oil and natural gas in Portugal, including the\n appraisal of a gas discovery.  Through its wholly owned subs...