AVANTI ARRANGES PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES

Friday August 12, 2016

Vancouver, British Columbia, August 12, 2016 Avanti Energy Inc. (TSXV: AVN) (“Avanti” or the “Company”) is pleased to announce that it has arranged a non-brokered private placement of convertible, redeemable debentures in the principal amount of up to $500,000 (the “Debentures”).  Closing of the private placement is expected to take place in tranches commencing later in August 2016.

 

The Debentures will mature June 30, 2019, carry an interest rate of eight percent (8%) per annum – payable quarterly in arrears, and be convertible into Units of the Company.  The Debentures may be redeemed by the Company at any time after June 30, 2017, upon advance seven (7) day written notice to the holder by the Company.

 

Should holders elect to convert the Debentures in whole or in part, the principal amount will convert to Units at $0.10 per Unit up to June 30, 2017; effective July 1, 2017, the conversion price is $0.15 per Unit until Maturity.  Each Unit will be comprised of one common share plus one-half of one warrant.  Each whole warrant gives the Holder the right to purchase one common share of the Issuer until June 30, 2019.  The warrant exercise price is $0.15 up to June 30, 2017; effective July 1, 2017 the exercise price is $0.20 until expiry.

 

The private placement is subject to receipt of applicable regulatory approvals, including approval of the TSX Venture Exchange. Securities issued under the placement will be subject to a four-month hold period, which will expire four months from the date of closing.

 

The Company may pay finders' fees in connection with the offering. The proceeds from the placement will be used for general working capital purposes.

 

For more information regarding the Company please contact Kirk Gamley, corporate communications, at 604-689-7422. 

 

 

“Karl Kottmeier”                                                                                                                                       

President and Chief Executive Officer        

 

 

 

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 news release.

 


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