March 5, 2018 – Vancouver, BC – Renaissance Oil Corp. (the “Company”) (TSX-V: ROE) is pleased to announce it has closed its previously announced private placement pursuant to an agency agreement dated March 5, 2018 (the “Agency Agreement”) between the Company and Haywood Securities Inc. (the “Lead Agent”), Paradigm Capital Inc., Beacon Securities Limited and Canaccord Genuity Corp. (together with the Lead Agent, the “Agents”) for 44,555,000 units (the “Units”) (including upon the partial exercise of the agents’ option) at a price of C$0.25 per Unit, for aggregate gross proceeds of C$11,138,750 (the “Offering”).
Each Unit consists of one common share of the Company and one common share purchase warrant of the Company (a “Warrant”). Each Warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of C$0.50 until March 5, 2021. The Warrants were issued pursuant to, and are governed by, a warrant indenture between the Company and Computershare Trust Company of Canada. The Company intends to apply to the TSX Venture Exchange upon expiry of the hold period for the listing of the Warrants.
The net proceeds of the Offering will be used to aid in the Company’s ongoing efforts in securing oil and gas rights in Mexico, to fund capital expenditures and for general corporate purposes.
In consideration for their services, the Agents received (a) a cash commission equal to 6.0% of the gross proceeds of the Offering, excluding from those subscriptions identified and delivered by management or the board of directors of the Company, (b) compensation warrants (the “Compensation Warrants”) equal to 6.0% of the Units sold under the brokered portion of the Offering, and (c) 265,000 Compensation Warrants for corporate finance advice provided in connection with the Offering. Each Compensation Warrant will entitle the holder thereof to acquire one Unit at a price of C$0.25 until March 5, 2020.
Pursuant to Canadian securities laws, any securities issued in the Offering (including the Compensation Warrants and securities issued upon exercise of the Compensation Warrants) will be subject to a hold period expiring on July 6, 2018.