COBRA VENTURE CORPORATION ANNOUNCES $300,000 PRIVATE PLACEMENT AND GRANT OF STOCK OPTIONS
May 27, 2010
Cobra Venture Corporation (the “Corporation”) (TSX Venture Exchange “CBV”) announces that it plans to complete a non-brokered private placement of up to 2,000,000 common shares in the capital of the Corporation issued on a “flow-through basis” (the “FT Shares”) at a price of $0.15 per FT Share, for gross proceeds of up to $300,000 (the “Offering”).
The Offering is subject to receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange (the “TSXV”). The securities issued pursuant to the Offering will be subject to a four (4) month hold period. Closing of the Offering is expected to occur on or about June 21, 2010. Net proceeds of the Offering are intended to be used by the Corporation to fund ongoing exploration programs of the Corporation. It is anticipated that certain insiders of the Corporation will participate in the Offering.
Further, the Corporation announces that it is granting 600,000 stock options to current directors, officers and consultants of the Corporation. The stock options permit each individual to purchase common shares of the Corporation (“Common Shares”) at an exercise price of [$0.175] per Common Share, a price which equals the close of market trading price on May 25, 2010 (the last day the Common Shares traded on the TSXV), for a period of five (5) years from the date of issuance. One quarter (1/4) of the options granted to each of the foregoing persons will vest immediately, with a further one quarter (1/4) to vest on the six, twelve and eighteen month anniversary of the granting of the options.
Cobra Venture Corporation is an emerging energy corporation focused on the acquisition and development of strategic oil and natural gas reserves in Western Canada. Common shares of the corporation trade on the TSX Venture Exchange under the symbol CBV.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cobra Venture Corporation
Daniel B. Evans
President and CEO
Canadian Toll Free (888) 888-9122
US Toll Free (888) 888-9123
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any sate securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither 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 release.
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Corporation’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward‑looking information relating to the intention of the parties to complete the Offering, including the amount and use of the gross proceeds, the participation of insiders in the Offering and the anticipated closing date of the Offering. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward‑looking information. Those assumptions and factors are based on information currently available to the Corporation. The material factors and assumptions include being able to obtain the necessary director and regulatory approvals and Exchange policies not changing. Risk Factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward‑looking information include, among other things: conditions imposed by the Exchange, the failure to obtain the required directors’ approval to the proposed Offering; general economic and business conditions; and changes in the regulatory regulation. The Corporation cautions the reader that the above list of risk factors is not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Corporation is not obligated to update or revise any forward‑looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward‑looking information. The foregoing statements expressly qualify any forward‑looking information contained herein.