Choice Announces Non-Brokered Private Placement Expected to Benefit Charities
CALGARY, ALBERTA, Oct 23, 2006 (CCNMatthews via COMTEX News Network) --
Choice Resources Corp. ("Choice" or the "Corporation") (TSX VENTURE:CZE) announces its intention to complete a non-brokered private placement of up to 2,000,000 flow-through common shares at a price of $0.75 per share (the "Flow-Through Shares"). The Flow-Through Shares are being issued to investors that the Corporation expects will donate such shares to a charitable organization. In addition, as no finder's fees or commissions will be paid by the Corporation in connection with this private placement, Choice has volunteered to donate to a charitable organization that number of its common shares equal to 5% of the aggregate number of Flow-Through Shares issued pursuant to the private placement or to make an equivalent cash donation. The private placement is expected to be completed on or about October 27, 2006.
Philanthropy is taking a higher profile in Canada with several high net worth individuals making recent donations to organizations such as the Toronto General Hospital and the University of British Columbia. The National Post recently dedicated several pages to this topic. This offering could very well be the first, or one of the first financings of its kind in Canada.
This financing, while relatively small, would have several tangible benefits to Choice. There is no right of first refusal, no warrants and a minimum of costs. Also, some very high profile and high net-worth individuals would be exposed to Choice who otherwise might not become familiar with the Company.
The proceeds from the private placement will be used by the Corporation to fund the continued exploration and development of the Corporation's oil and natural gas properties.
All shares issued in connection with the private placement will be subject to a hold period that will expire four months and one day from the applicable closing date.
Completion of the private placement is subject to certain conditions, including receipt of all necessary regulatory approvals.
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