Oct. 29, 2010 (Canada NewsWire Group) --
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
CALGARY, Oct. 29 /CNW/ - Wavefire.com Ltd. (the "Company") (TSXV-WAF.H) is pleased to announce that further to its news release of May 18, 2010, it has closed its $2.5 million non-brokered private placement. Under the private placement the Company issued 14,705,882 common shares at $0.17 per share to Victor Redekop, the Chairman and a director of the Company. Mr. Redekop now holds 42.9% of the outstanding common shares of the Company.
The proceeds of the financing will be used to fund the testing and completion of the Kirkwall 5-20-27-5 W4 well, which was successfully drilled in December 2009 and currently stands cased awaiting completion. Completion operations and extended flow testing of the well is expected to begin later this month. The proceeds will also be used for the drilling, testing and completion of two additional wells in the Acadia Area of Alberta, and for working capital. As of September 30, 2010, after giving effect to the proceeds from the private placement, the Company had working capital of approximately $1,819,240.
The Company has the right under a farm-in agreement to earn 100% interest (subject to existing encumbrances) in the drilling spacing unit and a 85% interest in the balance of the three sections of land in the Acadia Area lands by incurring 100% of the drilling and abandonment costs.
The TSX Venture Exchange has accepted the Company's application for reactivation and effective November 1, 2010, the Company's shares will commence trading on the TSX Venture Exchange under the symbol WAF.
The Company's management and directors consist of:
| Charles (Bill) Barker | President and Director |
| Chris Reimchen | Chief Financial Officer and Director |
| Victor Redekop | Chairman and Director |
| Cuneyt Tirmandi | Director |
| Gerry Gilbert | Director |
The Company's filing statement prepared in connection with the application for reactivation has been filed on SEDAR.
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
This press release does not constitute an offer to purchase securities. The securities to be offered in the offering have not been 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 or to, or for the benefit or account of, a U.S. person, except pursuant to an available exemption from such registration requirements.
Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact contained herein, the information presented constitutes "forward looking statements". Such forward-looking statements, including but not limited to those with respect to the drilling, testing and completion of the Kirkland and other wells, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Wavefire.com Inc.
Victor Redekop, Chairman
Tel: (403) 541-5310