Aspen Announces Closing Of $3 Million Private Placement.News Editors/Business Editors OKLAHOMA CITY--(BUSINESS WIRE)--April 5, 2004 Aspen Group Resources Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ASPGF) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :ASR (Automatic Speech Recognition) Using voice recognition to replace keypad entry for telephone voice menus. Typically used to speak the digits 0 through 9 insted of keying them, ASR systems may be able to recognize a limited vocabulary. See voice recognition and AVSR. ) ("Aspen" or the "Company") today announced the closing of its previously announced private placement equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . At closing, a total of 12 million special warrants were issued at a price of $0.25 for total proceeds of $3,000,000. Each special warrant is convertible for no additional consideration into units, with each unit consisting of one share and one half-share purchase warrant. Each whole warrant is exercisable for 12 months at $0.35 to acquire one share. The shares and warrants carry a four-month hold period from the closing date. The offering, which was oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. , was led by Jones Gable & Co. Limited and Fort House Inc. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). will be used for drilling, general corporate purposes, and to reduce debt. One-third of the gross proceeds from the sale of the special warrants will be deposited into escrow at closing pending shareholder approval of the financing at the Company's annual general meeting. Aspen also announced that Mr. Robert Cudney had accepted the position of Chairman of the Board of Aspen. Mr. Cudney, Aspen's largest shareholder, has been a director of Aspen since May 2002. Mr. Cudney is the President and founder of Northfield Capital Corp. and has served as a director of several public companies in Canada. Aspen's Board has formally extended Mr. Robert Calentine's term as Chief Executive Officer of the Company. Mr. Calentine has served as Aspen's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. since October 2002 and has been a director of Aspen since May of 2002. Mr. Ron Mercer, Vice President of Aspen's US operations, will expand his responsibilities to included Aspen's Canadian operations. Mr. Mercer has been with Aspen since 1999 and is a petroleum engineer with over 30 years experience in oil and gas operations. Aspen Group Resources Corporation is an independent oil and natural gas producer engaged in the acquisition, exploration, production and development of oil and natural gas properties in the Mid Continent Region in the US and Western Canada. Aspen's shares trade on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol "ASR". Portions of this document include "forward-looking statements", which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this document are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's Annual Report on Form 20-F and other reports filed with the Securities and Exchange Commission. Such factors include, among others, production variances from expectations, uncertainties about estimates of reserves, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, environmental risks, drilling and operating risks, risks related to exploratory and developmental drilling, competition, government regulation, and the ability of the company to implement its business strategy. |
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