February 12, 2014- Calgary, Alberta - Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE: CIL) is pleased to announce, subject to regulatory approval, the completion of a non-brokered private placement of 400,000 common shares ("Common Shares") at a price of $0.25 per share to Tonsenhagen Forretningssentrum AS, a related party of Erik Larre who is a director of the Company.
The issuance of Common Shares to Tonsenhagen Forretningssentrum AS pursuant to the private placement is considered to be a related party transaction subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. Canoel is relying on the exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that participation in the private placement by Tonsenhagen Forretningssentrum AS did not exceed 25% of the fair market value of the Company’s market capitalization.
Unless permitted under securities legislation, the 400,000 Common Shares issued must not trade before June 12, 2014.
The proceeds from this offering will be used to finance the Company’s operations and to augment its unallocated working capital. This transaction is subject to the submission of final documentation and final approval of the TSX Venture Exchange.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Jose Ramon Lopez Portillo Andrea Cattaneo
Chairman of the Board CEO & President
Telephone: (403) 938-8154
Telefax: (403) 775-4474
This press release is not to be distributed to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.