Yoho Resources INC. Announces closing of bought deal financing and concurrent private placement
Calgary, Alberta - December 8, 2010 - Yoho Resources Inc. ("Yoho" or the "Company") (TSXV: YO) is pleased to announce the closing of its recently announced bought deal financing of 1,820,000 common shares ("Common Shares") at an issue price of $2.75 per Common Share and 1,220,000 Common Shares issued on a "flow through" basis pursuant to the provisions of the Income Tax Act (Canada) (the "Flow-Through Shares") at an issue price of $3.30 per Flow-Through Share for aggregate gross proceeds of $9,031,000 (the "Offering"). The Offering was led by Paradigm Capital Inc. and included Peters & Co. Limited, Acumen Capital Finance Partners Limited and FirstEnergy Capital Corp.
Yoho is also pleased to announce that it has also closed its previously announced non-brokered private placement (the "Private Placement") of an aggregate of 303,030 Flow-Through Shares at an issue price of $3.30 per Flow-Through Share for aggregate gross proceeds of $1,000,000. The Flow-Through Shares issued pursuant to the Private Placement will be subject to a four-month hold period from the date hereof.
Proceeds of the Offering and the Private Placement will be used to initially reduce Yoho's existing bank indebtedness and to accelerate Yoho's exploration and development program, with the gross proceeds from the sale of the Flow-Through Shares (including the Flow-Through Shares issued pursuant to the Private Placement) used to fund ongoing exploration activities eligible for Canadian exploration expenses which will be renounced in favour of the subscribers of the Flow-Through Shares effective on or before December 31, 2010.
Yoho is a Calgary based junior oil and natural gas company with operations focused in west central Alberta, the Peace River Arch of Alberta and northeast British Columbia. The Common Shares are listed on the TSX Venture Exchange under the symbol "YO".
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Yoho will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.
For more information please contact:
Wendy S. Woolsey
Vice President, Finance and CFO
Yoho Resources Inc.
Phone: (403) 537-1771
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.
This news release contains certain forward-looking statements, which include the use of proceeds from the Offering and Private Placement and timing of renunciation of flow through expense. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Yoho's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Yoho's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, that Yoho will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Yoho or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Yoho does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.