Mr. Shelby Beattie reports
EMERALD BAY ENERGY CLOSES PRIVATE PLACEMENT
Emerald Bay Energy Inc. has closed its private placement in which 33,333,333 units were issued (of which 14,034,333 units were acquired by directors and officers of the corporation and 10,273,333 units were acquired by insiders of the corporation) at a price of 1.5 cents per unit, for aggregate consideration of $500,000. Each unit comprises one common share of the corporation and one share purchase warrant (each full warrant shall entitle the holder thereof to purchase one additional common share of the corporation for a period of 12 months from the issuance of the units at a price of five cents).
The warrants are subject to an acceleration clause whereby if after four months and one day following the date the warrants are issued, the closing price of the common shares of the corporation on the principal market on which such shares trade is equal to or exceeds 10 cents for 30 consecutive trading days (with the 30th such trading date hereafter referred to as the eligible acceleration date), the warrant expiry date shall accelerate to the date which is 30 calendar days following the date a press release is issued by the corporation announcing the reduced warrant term, provided, no more than five business days following the eligible acceleration date, (i) the press release is issued and (ii) notices are sent to all warrant holders.
The net proceeds will be used on the corporation's assets in Texas. The corporation will use the funds from this offering as follows:(i) land and lease renewals and acquisitions at Wooden Horse, Texas, and La Vernia, Tex., at an approximate cost of $190,000; (ii) drill and test Kuhn A7 well (Wooden Horse) at an approximate cost of $137,500; and(iii) drill and test Huebinger A1 well (Wooden Horse) at an approximate cost of $137,500.
All of the common shares and warrants issued pursuant to the private placement are subject to a four-month hold period. The terms of the private placement are according to the TSX Venture Exchange discretionary waivers of five-cent minimum pricing requirement bulletin dated April 7, 2014, and are subject to the approval of the TSX Venture Exchange.
About Emerald Bay Inc.
Emerald Bay is an energy company with oil-producing properties in southwest Texas, as well as non-operated oil and natural gas interests in central Alberta, Canada. Emerald is the operator of the Wooden Horse and Nash Creek projects in Guadeloupe, Tex., where the company currently now owns a 50-per-cent working interest in those projects.
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