CALGARY, Dec. 8 /CNW/ - Unitech Energy Resources Inc. ("Unitech") (TSXV: URX) announces that it has executed an engagement letter with Research Capital Corporation ("Research") pursuant to which Research has agreed to use commercially reasonable efforts for an offering of units ("Units") of Unitech. The Units will be offered at a price of $0.45 per Unit for gross proceeds of a minimum of $1,687,500 (3,750,000 Units) and a maximum of $3,375,000 (7,500,000 Units). Each Unit will consist of one common share (deemed to be issued at a price of $0.20 per share), one flow-through common share (deemed to be issued at a price of $0.25 per share) and one common share purchase warrant ("Warrant") of Unitech. Each Warrant will entitle the holder to purchase one additional common share of Unitech at a price of $0.30 per share for a period of 12 months from the closing of the offering.
Unitech has agreed to grant Research an over-allotment option which will entitle Research to sell up to that number of Units that is equal to 15% of the number of Units sold under the offering. The over-allotment option will be exercisable for a period of 60 days after the closing of the offering.
The initial closing of the offering is expected to occur on December 29, 2006 with the final closing expected to occur on or before February 15, 2007. The net proceeds from this offering will be used to fund Unitech's exploration, development and acquisition programs as well as for general corporate purposes.
Unitech uses LeadScan, its proprietary image analysis and pattern recognition system, to assist in its focus on high-working-interest, lower risk, oil and gas plays. Unitech's website is www.leadscan.ca.
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, which include but are not limited to risks inherent in the oil and gas industry, regulatory and economic risks, and risks associated with the company's ability to implement its business plan. The company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.
The TSX Venture Exchange has not reviewed, and does not accept
responsibility for, the adequacy or accuracy of this release.