Yoho Resources Inc. announces bought deal financing and concurrent private placement
Calgary, Alberta - November 17, 2010 - Yoho Resources Inc. ("Yoho" or the "Company") (TSXV: YO) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Paradigm Capital Inc. and including Peters & Co. Limited, Acumen Capital Finance Partners Limited and FirstEnergy Capital Corp. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase on a bought deal basis for resale 1,820,000 common shares of the Company (the "Common Shares") at an issue price of $2.75 per Common Share and to place on a bought deal basis 1,220,000 Common Shares to be 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 to Yoho of $9,031,000 (the "Offering").
The Offering is scheduled to close on or about December 8, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange ("TSXV"). The Common Shares and the Flow-Through Shares issuable pursuant to the Offering will be offered in certain provinces of Canada by way of a short form prospectus.
Yoho is also pleased to announce that it also intends to issue, on a private placement basis (the "Private Placement") to certain insiders of Yoho, an aggregate of 303,030 Flow-Through Shares at an issue price of $3.30 per Flow-Through Share for gross proceeds of $1,000,000. The Private Placement is expected to close on or before the closing date of the Offering and is subject to the receipt of all necessary approvals, including the approval of the TSXV.
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 focusing in the northwest Peace River Arch of Alberta and northeast British Columbia. The Common Shares are listed on the TSXV 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 press release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the anticipated closing date of the Offering and the Private Placement and the anticipated use of the net proceeds of the Offering and the Private Placement. Although Yoho believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Yoho can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Offering and/or the Private Placement could be delayed if Yoho is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering and/or the Private Placement will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Offering and/or the Private Placement will not be completed within the anticipated time or at all. The intended use of the net proceeds of the Offering and/or the Private Placement by Yoho might change if the board of directors of Yoho determines that it would be in the best interests of Yoho to deploy the proceeds for some other purpose, such as an acquisition. The forward looking statements contained in this press release are made as of the date hereof and Yoho undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.