Cabo Drilling Announces Closing of First
Tranche of Private Placement of Debenture Units for Gross Proceeds of $2.7
Million
Cabo Drilling Corp. (TSX VENTURE: CBE) ("Cabo Drilling" or the
"Company")
announces today that it has closed the first tranche (the �First Tranche�) of its
non-brokered private placement of debenture units (the �Units�), raising gross
proceeds of $2,705,000 which is part of a larger offering (the �Offering�) to raise a
total of up to $5,000,000.
The full Offering is anticipated to consist of 5,000 Units at a price of $1,000
per Unit for gross proceeds of $5,000,000. Each Unit will be comprised of one
secured subordinate debenture in the principal amount of $1,000 (a "Debenture") and
500 common shares (the �Common
Shares�) of the Company.
The Debentures have a face value of $1,000 per Debenture, a maturity date of
May 30, 2015 (the �Maturity
Date�), and will accrue interest at a rate of 12% per annum
payable semi-annually in arrears on November 30th and May 31st in each year
commencing November 30, 2012. The November 30, 2012 interest payment will
represent accrued interest for the period from the closing date. The Debentures
will be redeemable, in whole or in part, at any time following the closing
date, for cash at 102% of the principal amount of the Debentures, together with
accrued and unpaid interest, at the Company�s sole option on not more than 60
days� and not less than 30 days� prior written notice.
The Debentures will be secured against all assets of the Company, but
subordinated to an existing demand loan facility, an equipment loan the Company
is currently pursuing and an existing bridge loan facility.
The Company will use the net proceeds of the Offering for general working
capital purposes. The securities issued under this private placement are
subject to a hold period under applicable Canadian securities legislation of
four months and a day expiring on October 1, 2012. Closing of the Offering remains
subject to TSX Venture Exchange approval.
Under this First Tranche, a finder's fee of $162,300 in cash will be paid to
Ascendant Securities Inc. ("ASI").
In addition, ASI will receive an aggregate of 1,352,500 share purchase warrants
(the "Finder's
Warrants"), with each such Finder�s Warrant entitling ASI
to purchase one common share at a price of $0.12 at any time up to 24 months
from the closing date of this transaction. The Company will also issue 311,075
common shares to ASI for corporate advisory services.
About
Cabo Drilling Corp. (TSX VENTURE: CBE)
Cabo Drilling Corp. is a drilling services company
headquartered in North Vancouver, British Columbia, Canada. The Company
provides mining related and specialty drilling services through its Canadian
divisions in Surrey, British Columbia; Montr�al, Quebec; Kirkland Lake,
Ontario; and Springdale, Newfoundland; Cabo Drilling
(Panama) Corp. of Panama, Republic of Panama; Cabo
Drilling Panama-Pacifico Corp. of Panama, Republic of
Panama doing business as Cabo Drilling Colombia
Corp.; Balkan States Drilling SH.P.K. of Tirana,
Albania; and Cabo Drilling (International) Inc. The
Company's common shares trade on the Frankfurt Exchange under the symbol: DHL
and on the TSX Venture Exchange under the symbol: CBE.
ON BEHALF OF THE BOARD
John A. Versfelt, Chairman, President and CEO