Touchstone Exploration Inc. announces that further to the Company's announcements dated December 5, 2022 and December 6, 2022 regarding the private placement in Canada (the "Canadian Private Placement") and the proposed placing in the United Kingdom (the "UK Placing") (together the "Fundraise"), Touchstone has raised aggregate gross proceeds of approximately US$13 million (approximately £11 million and C$18 million) through the placing of a total of 19,924,400 new Company common shares of no par value (the "Fundraise Shares"), at a price of 54.5 pence per Fundraise Share (C$0.90 per Fundraise Share in respect of the Canadian Private Placement) (the "Placing Price").
Of the aggregate common shares to be issued pursuant to the Fundraise, the Company has placed 8,704,400 new common shares with investors in Canada at the Placing Price, raising gross proceeds of approximately US$5.8 million (approximately £4.8 million and C$7.8 million), and 11,220,000 new common shares with institutional investors in the United Kingdom (the "UK Placing Shares"), at the Placing Price, raising gross proceeds of approximately US$7.5 million (approximately £6.1 million and C$10.1 million).
Shore Capital and Corporate Limited and Shore Capital Stockbrokers Limited (together, "Shore Capital") and Canaccord Genuity Limited ("Canaccord") acted as Joint Bookrunners in connection with the UK Placing.
Paul R. Baay, President and Chief Executive Officer, commented:
"I am pleased to confirm the completion of our fundraising, with strong support from both existing and new shareholders. The Fundraise allows us to accelerate our exploration and development program on the Ortoire block, which has yielded excellent results to date. With Coho having recently been brought onto production and facility construction at Cascadura underway, we are making substantial progress towards becoming an energy production company of significant scale, with a range of additional exploration prospects. The Fundraise allows us to accelerate certain aspects of our exploration and development strategy while we focus resources on bringing Cascadura onto production. I look forward to updating shareholders on our progress."
Listing and Voting Rights
Application will be made for the Fundraise Shares, which will rank pari passu with the Company's existing issued share capital, to be admitted to trading on AIM ("Admission") and the Toronto Stock Exchange. Subject to the conditions to the UK Placing set out in the Company's announcement earlier today, December 6, 2022 the Fundraise Shares are expected to be issued and admitted to trading on AIM on December 14, 2022.
The Fundraise Shares will represent approximately 8.5 percent of the total issued share capital in the Company on Admission.
The UK Placing Shares will be subject to a four-month and one day restricted hold period which will prevent such UK Placing Shares from being resold in Canada, through a Canadian exchange or otherwise, during the restricted period without an exemption from the Canadian prospectus requirement. The UK Placing Shares will otherwise be freely transferable.
Immediately following Admission of the Fundraise Shares, the Company's issued share capital will consist of 233,037,226 common shares. The Company does not hold any common shares in treasury. This figure may be used by shareholders to determine if they are required to notify their interest in, or a change to their interest in, the Company.
