Synstream Energy Corp. Announces Intention to Complete Non-Brokered Flow-Through Common Shares Private Placement of $1.5 Million and Appointment of G. Steven Price to Board of Directors
Calgary, Alberta (FSCwire) - Synstream Energy Corp. (“Synstream” or the “Corporation”) (TSXV:SHM), announces that it intends to complete a non-brokered private placement (the "Offering") of up to 6,000,000 common shares of the Corporation to be issued on a “flow-through” basis (the "CRCE Flow-Through Shares") with respect to "Canadian Renewable and Conservation Expenses" within the meaning of the Income Tax Act (Canada) and regulations thereunder (the "Tax Act") at a price of $0.25 per CRCE Flow-Through Share for gross proceeds of up to $1,500,000. In connection with the Offering, the Corporation may pay finders' fees to certain arm's length parties in accordance with the rules of the TSX Venture Exchange (the "TSXV") in consideration for their efforts in introducing subscribers to the Company.
The Corporation will use the net proceeds of the CRCE Flow-Through Shares sold under the Offering to construct a waste-heat-to-power system at the Corporation’s proposed gas-to-liquids plant near Carseland, Alberta. The Corporation intends to use the gross proceeds from the issuance of the CRCE Flow-Through Shares to incur "Canadian Renewable and Conservation Expenses" within the meaning of the Tax Act.
The securities to be issued under this Offering will be offered by way of private placement in the provinces of British Columbia, Alberta, Saskatchewan, Ontario and such other provinces or territories of Canada as may be determined by the Corporation, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. Securities issued under the Offering will be subject to a four-month hold period which will expire four months and one day from the date of closing of the Offering.
Closing of the Offering is anticipated to occur on or before December 31, 2016. The Offering and the payment of any finder’s fee is subject to acceptance by the TSXV and other customary conditions for a transaction of this nature.
Synstream is also pleased to announce that G. Steven Price, the current President of Expander Energy Inc. (“Expander”) and a member of its Board, has been appointed to the Board of Directors of Synstream. Mr. Price has over 35 years of experience in engineering and management including corporate operations, evaluations, facilities design and operation. Mr. Price received his Bachelor of Science degree in Electrical Engineering from the University of Manitoba. He is past President of Unitech Energy Resources Ltd., Vice President of HCO Energy Ltd., Bralorne Resources Inc., and Manager of Ranchmen’s Resources Ltd. (all oil & gas issuers that are or were listed on the TSX). The appointment of Mr. Price remains subject to receipt of any required regulatory approvals.
About Synstream Energy Corp.
Synstream continues to evaluate business development opportunities in the petroleum and natural gas resource sectors, focusing on its partnership between with Expander Energy Inc. and a consortium of private investors to build Canada’s first small-scale commercial Enhanced GTL® (“EGTL™”) plant in Alberta. Given the current depressed nature of natural gas prices in relation to diesel prices in Alberta, management is confident that expansion of the Corporation's business activities can be accomplished on a basis that is both economically feasible and sustainable.
Synstream Energy Corp. is dedicated to transparency for our shareholders. We are proud to be a part of 8020 Connect’s shareholder engagement platform. Join the conversation and engage with Synstream's management at 8020 Connect.
For further information, contact:
Chief Executive Officer
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Source: SynStream Energy Corp. (TSX Venture:SHM)
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