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Jericho Oil closes $5-million private placement

2020-06-12 17:31 ET - News Release

Mr. Brian Williamson reports

JERICHO OIL CLOSES FULLY SUBSCRIBED $5M EQUITY FINANCING FOR FUTURE ACQUISITIONS

Further to its news release dated April 23, 2020, Jericho Oil Corp. has closed a fully subscribed non-brokered private placement of 50 million units at 10 cents per unit for gross proceeds of $5-million.

Each unit comprises one common share and one warrant, with each warrant being exercisable for one additional common share at an exercise price of 13 cents for a period of 36 months from the date of issuance.

Net proceeds from the offering, which was led by existing shareholders and insiders, will be used for the acquisition of assets during the current market downturn and working capital. Jericho will seek to acquire what it believes to be high-quality assets in special situations. While Jericho does not currently have any binding agreements to enter into any such transaction, having cash on hand allows it to be nimble as opportunities may present themselves.

Brian Williamson, chief executive officer, said, "We are grateful for the strong support of our long-term major investors, who, despite these very challenging times, share our belief that the current situation could present tremendous growth opportunities for the company."

All securities issued pursuant to the offering are subject to a four-month-and-one-day hold period from the date of issuance. As a result, all shares and warrants that were issued are subject to a hold period expiring Oct. 13, 2020. The offering remains subject to final acceptance of the TSX Venture Exchange. No finders' fees or commissions were paid in connection with the offering.

Insiders of Jericho acquired a total of 17,197,023 units in the offering. The insider participation is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 -- Protection of Minority Securityholders in Special Transactions (MI 61-101) by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 based on that the fair market value of such insider participation does not exceed 25 per cent of Jericho's market capitalization.

About Jericho Oil Corp.

Jericho Oil is focused on domestic, liquids-rich, unconventional resource plays, located primarily in the Anadarko basin Stack play of Oklahoma. Jericho's primary business objective is driving long-term shareholder value through the growth of oil and gas production, cash flow, and reserves. Jericho has assembled a 55,000-net-acre position across Oklahoma.

We seek Safe Harbor.

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