CALGARY, Canada (Aug. 25, 2023)—Sonoro Energy Ltd. (“Sonoro” or the “Company”) (TSXV: SNV.H) announces its intention to complete a non-brokered private placement common share/warrant unit financing to support ongoing activities relating to its previously announced Western Canadian Sedimentary Basin (“WCSB”) Farm-In Agreement (the “Agreement”), general corporate purposes and pursuit of international oil and gas opportunities.
Sonoro intends to raise up to CAD$2,000,000 for a total of up to 33.33 million units comprised of one $0.06 common share (a “Common Share”) and one common share purchase warrant (a “Warrant”) of the Company, where each whole Warrant entitles the holder to purchase one Common Share within two years at a price of $0.12 per Common Share. The securities issued in connection with the Offering will be subject to a four month and one day hold period from the date of issuance of such securities.
As part of this non-brokered financing, warrants are subject to an acceleration clause. This clause states that if, four months and one day after the warrants are issued, the closing price of the common shares of the Corporation, on the principal market on which such shares trade, is equal to, or exceeds, C$0.15 for 10 consecutive trading days (with the 10th such trading date hereafter referred to as the “Eligible Acceleration Date”), the warrant expiry date shall accelerate to a date 20 calendar days after issuance of a press release by the Corporation announcing the reduced warrant term—provided, no more than five business days following the Eligible Acceleration Date, that, the press release is issued; and notices are sent to all warrant holders.
As a further update to the Agreement and ongoing operations to commence drilling of the first test well, Sonoro has acquired surface access along with surveys and will be shortly applying to the regulator to license the locations. The drilling program has been finalized, long lead items secured and upon granting of the drilling license, lease construction will commence followed by a drilling rig mobilized to site with spudding of the well expected prior to Sept. 30, 2023 meeting the Farm-In Agreement condition.