STRATA-X CLOSES TRANCHE 1 OF CDI PLACEMENT

 

BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - 3 December 2019 (Pacific Time - Canada) (TSX-V:SXE) (ASX:SXA)

Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) The directors of Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) are pleased to announce that the Company has closed the first tranche of its non-brokered private placement (“Placement”) to sophisticated and institutional investors in Australia. The Company raised gross proceeds of A$630,000 through the issuance of 12,600,000 Units at a price of A$0.05 per Unit. Each Unit consists of one Chess Depository Unit (“CDI”) and one half of one (unlisted) option. Each option is exercisable into one CDI at an exercise price of A$0.07 up until December 31, 2022.

The Company intends to use the majority of the Placement proceeds to the recently announced Project Venus in the Surat Basin, Queensland, Australia, targeting coal seam gas through ‘on the ground activities’. Funds will also be used to complete the ongoing environmental and development studies over the Company’s 100% owned Serowe CSG Project in Botswana, repayment of a director loan and its associated interest, lease maintenance, and general working capital.

The second tranche of the Placement is expected to close, subject to TSX Venture Exchange (TSXV) approval, on or before January 3, 2020 (following the Company’s AGM) for subscriptions totaling A$270,000, which includes Mr Prefontaine’s (the Company’s Executive Chairman) subscription for $170,000 (subject to shareholder approval at the AGM).

Eligible finders may receive a fee of up to 5.0% of gross proceeds raised, to be paid in cash. The Placement is subject to Exchange (TSX-V) acceptance. All of the securities issued pursuant to the first tranche of this offering will have a hold period in Canada expiring on April 3, 2020.

About Strata-X

Strata-X is a Denver, Colorado (USA) based company and is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in Queensland, Australia, the States of California and Illinois in the United States of America and the Republic of Botswana. Strata-X has 100,638,318 common shares outstanding and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.

 

This announcement was made in Canada for the TSX.V and in Australia for the ASX.

Public documents for Strata-X Energy Ltd. can be found at SEDAR (Canada) (www.sedar.com) and ASX.com.au (Australia).

This news release contains forward-looking statements, which relate to future events or future performance, including but not limited to, the completion and size of the Placement, receipt of regulatory approvals and timing thereof, the Corporation’s business strategies and plans for the use of such Placement proceeds, capital expenditure programs and estimates relating to timing and costs, and reflect management's current expectations and assumptions, including, but not limited to the timing and receipt of necessary regulatory approvals and third party approvals and completion of the Placement and stability of general economic and financial market conditions. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions is intended to identify forward-looking statements. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forwardlooking statements are neither promises nor guarantees, and are subject to risks and uncertainties , including imprecision in estimate capital expenditures and operating expenses, stock market volatility, general economic and business conditions in North America and globally, risks associated with liquidity and capital resource requirements, that may cause future results to differ materially from those expected and the forward-looking statements included in this news release should not be unduly relied upon. See also "Risks Factors" in the Company's Annual Information Form available on SEDAR at www.sedar.com. Those factors are not, and should not be construed as being exhaustive. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in w

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture