Commitment letter signed regarding $5.72 million special warrant financing.VANCOUVER, British Columbia--(BUSINESS WIRE)--March 10, 1997-- TransGlobe Energy Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TGLEF) is pleased to announce that a group of Canadian investment firms have signed a commitment letter to use its reasonable best efforts to raise $5.72 million (US) for TransGlobe, to fund TransGlobe's farm-in on Block 32 in Yemen, subject to the execution of an agency agreement. The financing would be by private placement of up to 4.4 million special warrants at $1.30 (US) each. Each special warrant will entitle the investor to one common share of TransGlobe on the earlier of (a) 10 days following the date a prospectus qualifying the issuance of the shares has been receipted in certain provinces of Canada, or (b) the first anniversary of the closing date. If the final receipts for the prospectus are not issued on or before June 26, 1997, each special warrant holder will receive 1.1 common shares for each special warrant. The 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). from the private placement, if it closes, will be held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. pending the issuance of receipts for the final prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. but will be released for expenditures for TransGlobe's farm-in on Block 32 in Yemen. The closing of the private placement is anticipated to be approximately March 26, 1997. The special warrants and the common shares into which they will convert will not be and have not been registered under the US Securities Act of 1933 and may not be offered of sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. absent registration or an applicable exemption from registration requirements. CONTACT: TransGlobe Energy Corp. Ross G. Clarkson 604/683-2568 (phone) 604/683-0082 (fax) or Ruder Finn Ruder Finn is an United States public relations firm founded in 1948 by David Finn and William Ruder. Ruder Finn is a privately held, family-owned company that employs more than 450 people. Inc. Peter Zambelli 212/593-6348 (phone) |
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