Mr. Paul Baay reports
TOUCHSTONE RAISES APPROXIMATELY US$13 MILLION IN CONNECTION WITH UK AND CANADIAN FUNDRAISING
Further to Touchstone Exploration Inc.'s announcements dated Dec. 5, 2022, and Dec. 6, 2022, regarding the private placement in Canada and the proposed placing in the United Kingdom, Touchstone has raised aggregate gross proceeds of approximately $13-million (U.S.) (approximately 11 million pounds sterling and $18-million) through the placing of a total of 19,924,400 new company common shares of no par value, at a price of 54.5 pence per fundraise share (90 cents per fundraise share in respect of the Canadian private placement).
Of the aggregate common shares to be issued pursuant to the fundraise, the company has placed 8,704,400 new common shares with investors in Canada at the placing price, raising gross proceeds of approximately $5.8-million (U.S.) (approximately 4.8 million pounds sterling and $7.8-million), and 11.22 million new common shares with institutional investors in the United Kingdom, at the placing price, raising gross proceeds of approximately $7.5-million (U.S.) (approximately 6.1 million pounds sterling and $10.1-million).
Shore Capital and Corporate Ltd., Shore Capital Stockbrokers Ltd., and Canaccord Genuity Ltd. acted as joint bookrunners in connection with the U.K. placing.
Paul R. Baay, president and chief executive officer, commented:
"I am pleased to confirm the completion of our fundraising, with strong support from both existing and new shareholders. The fundraise allows us to accelerate our exploration and development program on the Ortoire block, which has yielded excellent results to date. With Coho having recently been brought onto production and facility construction at Cascadura under way, we are making substantial progress towards becoming an energy production company of significant scale, with a range of additional exploration prospects. The fundraise allows us to accelerate certain aspects of our exploration and development strategy while we focus resources on bringing Cascadura onto production. I look forward to updating shareholders on our progress."
Listing and voting rights
Application will be made for the fundraise shares, which will rank pari passu with the company's existing issued share capital, to be admitted to trading on the Alternative Investment Market and the Toronto Stock Exchange. Subject to the conditions to the U.K. placing set out in the company's announcement earlier today, Dec. 6, 2022, the fundraise shares are expected to be issued and admitted to trading on the AIM on Dec. 14, 2022.
The fundraise shares will represent approximately 8.5 per cent of the total issued share capital in the company on admission.
The U.K. placing shares will be subject to a four-month-and-one-day restricted hold period which will prevent such U.K. placing shares from being resold in Canada, through a Canadian exchange or otherwise, during the restricted period without an exemption from the Canadian prospectus requirement. The U.K. placing shares will otherwise be freely transferable.
Immediately following admission of the fundraise shares, the company's issued share capital will consist of 233,037,226 common shares. The company does not hold any common shares in treasury. This figure may be used by shareholders to determine if they are required to notify their interest in, or a change to their interest in, the company.
About Touchstone Exploration Inc.
Touchstone Exploration is a Calgary-based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol TXP.
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