October 6, 2015 – Vancouver, BC – Renaissance Oil Corp. (“Renaissance” or the “Company“) (TSX-V:ROE) is pleased to announce that it has closed the first tranche of its previously announced private placement pursuant to an agency agreement dated October 6, 2015 (the “Agency Agreement“) between the Company and Haywood Securities Inc. (the “Agent“), for 61,025,000 units (“Units“) at a price of C$0.10 per Unit, for gross proceeds of approximately C$6.1 million (the “Offering“).
Each Unit consists of one common share of the Company and one common share purchase warrant (a “Warrant“). Each Warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of C$0.20 until October 6, 2020. The Warrants were issued pursuant to, and are governed by, a warrant indenture between the Company and Computershare Trust Company of Canada dated October 6, 2015. The Company intends to apply to the TSX Venture Exchange upon expiry of the hold period for the listing of the Warrants.
Pursuant to the Agency Agreement, as compensation for services rendered in connection with the Offering, the Agent will receive a cash commission equal to 6% of the gross proceeds of the Offering, excluding proceeds identified and delivered by management or the board of directors of the Company, such orders not to exceed C$5,000,000, and will be subject to a 3% cash commission.
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.
The securities issued under the Offering, including the common shares issued on exercise of the Warrants, are subject to a hold period of four months plus one day from the date of issuance, expiring on February 7, 2016.