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Oakmont arranges $5-million private placement

2014-09-23 21:21 ET - News Release

Mr. Fraser Atkinson reports

OAKMONT ANNOUNCES BROKERED PRIVATE PLACEMENT OF COMMON SHARES

Oakmont Minerals Corp. will proceed with a brokered private placement of common shares for aggregate gross proceeds of up to $5-million.

Oakmont has entered into a letter of engagement with Wolverton Securities Ltd. to act as agent on a commercially reasonable efforts agency basis to sell a minimum of 16 million common shares and a maximum of 20 million common shares, at a price of 25 cents per postconsolidation (on a one for two basis) common share, for minimum aggregate proceeds of $4-million and maximum aggregate proceeds of $5-million, subject to the receipt of approval from the TSX Venture Exchange. All of the common shares issued in connection with the offering will be subject to a hold period expiring four months and one day after closing of the offering. Up to $1-million of the offering, or such other amount as agreed to between the company and the agent, may be completed on a non-brokered basis.

Closing of the offering is conditional upon, among other things, the concurrent closing of the transaction with GreenPower Motor Company Inc. as previously announced on April 22, 2014, and approved at the company's annual general and special meeting on May 16, 2014. The company intends to use the net proceeds of the offering to finance the operations of GreenPower, including the manufacturing costs of additional EV350 buses, engineering and design, sales and marketing, and general and administrative expenses.

In connection with the offering, the agent will be entitled to compensation of: (a) up to a 7-per-cent cash commission on the gross proceeds of the offering, and (b) agent options of up to 7 per cent of the number of common shares sold in the offering, with each such option permitting the agent to acquire one additional common share at an exercise price of 25 cents per share for a period of 24 months from the date of issuance. The company will also pay the agent a corporate finance fee, issue 40,000 postconsolidation shares to Wolverton and reimburse Wolverton for its expenses incurred in relation to the brokered portion of the offering.

About GreenPower Motor Company

GreenPower Motor Company develops electric buses. The company's first product is a battery-powered 12-metre transit bus, with an estimated range of over 250 kilometres on a single charge, which the company intends to market in North America.

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