CanWest Petroleum Corporation: $22,500,000 Equity Funding.CALGARY, Alberta -- CanWest Petroleum Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CWPC CWPC Contingency Wartime Planning Course CWPC Certified Wellness Program Coordinator ) has completed a $22,500,000 ($25,900,000 CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. ) financing by way of a non-brokered private placement of 15,000,000 units. Each unit comprises one common share and one warrant at a cost of $1.50 per unit. For each two warrants the warrant holder has the right to purchase an additional common share for two years at $2 per share. The private placement totals 15,000,000 shares and an equal number of warrants to purchase an additional 7,500,000 shares. The units were issued to accredited investors including a number of Canadian Institutional Funds that purchased 87% of the issue. The issue was increased from 10 million units as previously announced and remained significantly over subscribed at closing. The shares and warrants are subject to a hold period. CanWest Petroleum will purchase additional shares of Oilsands Quest Inc. for $13,025,000 ($15,000,000 CDN), which will increase its interest in Oilsands Quest to 68.48%. Prior to January 31, 2006, the company may elect to purchase further equity in Oilsands Quest as to 406,000 units at a cost of $6 per unit (CDN) which will further increase its interest in Oilsands Quest to 69.20%. At that time the Company will also hold 1,250,000 warrants to purchase an additional 1,250,000 common shares of Oilsands Quest which if exercised, the Company will own a 71.2% equity interest in Oilsands Quest, on a non-diluted basis. Oilsands Quest has agreed that CanWest will, at this time, nominate a third Oilsands Quest Board Member of what will then become a five person Board of Directors. Oilsands Quest will be funding its next Phase Two drilling program of approximately 125 core holes on its Firebag East lands from the proceeds of the $15,000,000 (CDN) funding. 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. statement under 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: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the Company's operations, markets, products and prices and other factors discussed in the Company's various filings with the Securities and Exchange Commission. Cusip# 138748 10 8 CanWest Petroleum Corporation (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CWPC) |
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