12:23:45 EDT Thu 21 Jun 2018
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or Name

Epsilon Energy Ltd
Symbol C : EPS
Shares Issued 55,005,705
Close 2017-04-21 C$ 3.02
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Epsilon Energy completes $24.56-million rights offering

2017-04-21 13:58 ET - News Release

Mr. John Lovoi reports


Epsilon Energy Ltd. has completed its previously announced rights offering. The rights offering was oversubscribed, and at closing, Epsilon issued 9,167,617 common shares at a price of $2.68 per share for gross proceeds of $24,569,214.

A total of 7,576,916 common shares were issued pursuant to the basic subscription privilege of the rights offering, none of which were issued to insiders of Epsilon. A total of 1,590,701 common shares were issued pursuant to the additional subscription privilege of the rights offering, none of which were issued to insiders of Epsilon. Following completion of the rights offering, Epsilon has a total of 55,005,705 common shares issued and outstanding.

JVL Advisors LLC, a limited liability company owned and controlled by John Lovoi, the corporation's chairman of the board, acted as standby guarantor of the rights offering, having agreed to purchase from Epsilon all of the 9,167,617 common shares not otherwise subscribed for under the rights offering (the backstop commitment). As the rights offering was oversubscribed, JVL was not required to fulfill its obligations under the backstop commitment. However, to Epsilon's knowledge, JVL did exercise its basic subscription privilege and additional subscription privilege under the rights offering. There were no fees or other remuneration paid by the corporation in connection with the backstop commitment.

To the knowledge of Epsilon, after reasonable inquiry, no person that was not an insider became an insider of Epsilon as a result of the distribution under the rights offering.

The funds raised in the rights offering will be held by Epsilon as a reserve for future capital expenditures, which will provide the corporation with funds to finance the growth of its business and allow it to be able to react and respond to changing market conditions and potential acquisition opportunities.

We seek Safe Harbor.

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