Mr. Leonard Van Betuw reports
AVILA ENERGY CORPORATION IS PLEASED TO ANNOUNCE THE COMPANY'S ACCEPTANCE OF AN INITIAL FINANCING COMMITMENT OF U.S. $10 MILLION IN CONVERTIBLE DEBENTURES AND PROVIDES UPDATE
Avila Energy Corp. has accepted an initial financing commitment of $10-million (U.S.) in convertible debentures and has provided an update.
The company over the course of the past two months, after completing a series of meetings with qualified parties for the financing of up to $35-million (U.S.) in convertible debentures as part of its refocused plan on the balanced development of its assets in Alberta in 2023 in parallel to the development of its vertically integrated energy business, has come to a decision.
Furthermore, taking into consideration the recent announcements from General Motors and Tesla: "GM [chief executive officer] Mary Barra announced on Thursday that the company will also adopt the use of Tesla's charging network, giving drivers more options. Barra said during a Twitter Spaces audio conversation with Tesla CEO Elon Musk that electric vehicle drivers will be able to use its adapters that will be available in the spring 2024 and charge from Tesla's network (1)." This news confirms one of Avila Energy's target markets, electric vehicle charging.
"Today was an interesting day, first Ford (1) and now GM," said Leonard B. Van Betuw, president and chief executive officer. "It is now becoming evident that major auto manufacturers are now coming to realize what was being taken into consider Avila Energy Corp. for more than five years; prior to the majority of consumers being able to participate in the transition to electric vehicles (EVs), there must be both affordable and accessible electricity that is not dependent on third party infrastructure will be in high demand."
Avila Energy wishes to continue to emphasize that after numerous presentations, due diligence sessions and budget meetings over the past two months, the company successfully negotiated, and agreed to terms and accepted an offer of $10-million (U.S.) in convertible debentures to be priced as follows.
The units shall consist of: (i) one 24-month convertible unit with a stated face value of $1,150 (U.S.) per unit, convertible into one common share at a conversion price of 50 U.S. cents per share; and (ii) a two-year warrant representing the right to purchase one share of the company's common stock for every dollar of the purchase price of the unit at an exercise price of 50 U.S. cents per share.
In additional news today, Avila Energy, in light of this news, confirms that it has informed additional parties that the company is prepared to accept additional offers to increase the financing within the context of the terms currently agreed upon for working capital to be able to finance unbudgeted increases in demand that may occur as a result of the telling decisions being made by auto manufacturers.
The financing is to be completed by way of private placement offering: (i) pursuant to Section 4(a)(2) and/or Rule 506(b) of Regulation D under the U.S. Securities Act of 1933, as amended; or (ii) pursuant to Canada's applicable securities laws, including Multinational Instrument 45-106, and any and all applicable state/provincial securities laws.
(1) See Detroit News website: GM joins Ford in gaining access to Tesla's charging network.
The financing announced on Monday is progressing and is anticipated to close in the next 10 business days after the completion of the prefinancing customary due diligence and the preparation of the required legal documentation which are customary with a similar type of investment.
Currently the operation is completing facilities turnarounds and budgeting prior to starting the capital programs that will bring the company's production up to 1,000 barrels of oil equivalent per day, of which 15 per cent is anticipated to be 150 barrels per day oil and condensate, with the balance being natural gas and liquids.
About Avila Energy Corp.
The company is an emerging Canadian Securities Exchange-listed corporation trading under the symbol VIK and, in combination with an expanding portfolio of 100-per-cent-owned-and-operated oil and natural gas production, pipelines and facilities, is a licensed producer, explorer and developer of energy in Canada. The company's long-term vision is to achieve, through the implementation of a closed system of carbon capture and sequestration, an established path toward the material reduction of Tier 1, Tier 2 and Tier 3 emissions, and continues to work toward becoming a vertically integrated carbon neutral energy producer. The company's goals are to be achieved by focusing on the application of proven geological, geophysical, engineering and production techniques in combination with the direct sale of energy to both residential and commercial consumers.
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