CALGARY, ALBERTA–(Marketwired – June 9, 2016) – Huntington Exploration Inc. (“HEI” or the “Company“) (TSX VENTURE:HEI) announced today that the Board of Directors has unanimously approved a consolidation of its share capital on the basis of one (1) new common share for every existing six (6) common shares (the “Consolidation“), subject to regulatory approval, including approval of the TSX Venture Exchange. In addition, the Company intends to complete a non-brokered private placement offering of units (“Units“) for gross proceeds of up to $500,000 (the “Private Placement“).
Consolidation
Effective on or about Tuesday, June 14, 2016, HEI will complete the Consolidation. Where the exchange results in a fractional share, the number of common shares will be rounded up to the nearest whole common share. The Board of Directors believes that the Consolidation should enhance the marketability of the common share as an investment and should facilitate additional financings to fund operations in the future. Shareholder approval of the Consolidation was obtained at the annual general and special shareholders meeting held on September 17, 2015. A new CUSIP number of 445901200 replaces the old CUSIP number of 445901101, to distinguish between the pre- and post-consolidated shares. The Company’s name and trading symbol will remain unchanged.
Commencing at the opening of trading on or about Tuesday June 14, 2016, the common shares of the Company will trade on a post-Consolidation basis on the TSX Venture Exchange. Following the Consolidation, there are expected to be 22,931,056 post-Consolidation shares outstanding.
Private Placement
The Company further announced its intention to complete the Private Placement of Units at a price of $0.05 per Unit for gross proceeds of up to $500,000. Each Unit will consist of one common share (on a post-Consolidation basis) and one transferable common share purchase warrant, which each warrant entitling the holder thereof to purchase one additional common share (on a post-Consolidation basis) at a price of $0.05 per share for a period of thirty six months from closing.
The closing of the Private Placement is expected to occur on or about June 30, 2016 and is subject to regulatory approval, including approval of the TSX Venture Exchange. For further details on the Private Placement, please contact the Company. All securities issued in connection with the Private Placement will be subject to a hold period of four months from the date of closing. The Company intends to use the proceeds from the Private Placement to acquire new projects in the resource mining sector that will strategically complement the Company’s existing portfolio of oil and gas assets and for general working capital purposes, and HEI confirms that the proceeds will not be used to retire any current debt or to pay any management fees.
HEI is an exploration-focused corporation actively pursuing opportunities in the oil and natural gas business in the Western Canada sedimentary basin.
On behalf of the Board of Directors:
Bob Verhelst, President and CEO
Neither the 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.
Forward Looking Statements
This press release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”), including statements regarding HEI’s business, the proposed Consolidation and the proposed Private Placement. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond HEI’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although HEI believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, HEI does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Bob Verhelst
President and CEO
587-351-3538
www.huntingtonexploration.ca