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True North Energy Corporation Signs Letter of Intent (LOI) to raise up to $5 million in Growth Capital from Southridge Partners II, LP

Dec 18, 2013

OTC Disclosure & News Service

- True North Energy Corporation Signs Letter of Intent (LOI) to raise up to $5 million in Growth Capital from Southridge Partners II, LP

True North Energy Corporation Signs Letter of Intent (LOI) to raise up to $5 million in Growth Capital from Southridge Partners II, LP

PR Newswire

SPRING, Texas, Dec. 18, 2013 /PRNewswire/ -- True North Energy Corp. ("True North") (OTC Pink: TNEN) today announced that it has signed a letter of intent (LOI) with Southridge Partners II, LP, ("Southridge"), an institutional investor, outlining terms for an equity purchase agreement (EPA) in the amount of $5 million, which if funded, will create significant growth capital for True North.

Under terms of the LOI, upon execution of the EPA, and subject to certain closing conditions, True North will have the right, but not the obligation to sell, from time to time, up to $5 million of its common stock to Southridge under terms deemed favorable by management by submitting a Draw Down Notice in an amount that the company determines.

In order to Draw Down on the EPA, True North will need to have obtained effectiveness of a Form S-1 registration statement with the Securities and Exchange Commission, a process which it plans to initiate in 2014, funding permitting.  

"We are pleased to be partnering with Southridge, an institutional investor with a long, reliable history of providing capital to the small cap space. We believe this capital will be sufficient to fund our growth strategy," commented Gilbert Steedley, CEO of True North, who continued,  "We believe that the terms of this agreement are favorable to our shareholders and provide True North with the best opportunity to execute its business plan and deliver long-term shareholder value. We are thankful for the confidence Southridge has shown in True North, our management, and our strategy."

"True North Energy Corporation, with its recent collaboration agreements and its progress in improving its debt to asset ratio, provided us with the confidence necessary to commit to provide growth capital. We are excited to partner with True North and its seasoned management as they execute their strategy," commented Stephen Hicks, Principal and CEO of Southridge. The closing of the EPA transaction is subject to the negotiation and execution of definitive agreements.

About Southridge
Southridge is a diversified financial holdings company that specializes in funding and advising small cap and growth companies in the public markets. Since 1996, the structured finance team at Southridge has made direct investments of over $1.75 Billion in over 300 companies globally. Southridge advises small public companies on a wide variety of corporate issues from the process of becoming a public company, to individualized financing techniques, to optimized balance sheet management. For further information about Southridge, please visit www.southridge.com

About True North Energy Corporation
True North Energy Corporation is engaged in the acquisition and development of oil and gas properties. It holds overriding royalty interests on properties located in Alaska and Colorado. True North is headquartered in Spring, Texas. For further information about True North, please visit www.tnencorp.com.

This press release may contain forward-looking statements, including information about management's view of True North's future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release, including those regarding the LOI, EPA, True North's plans to become fully-reporting, file a registration statement and raise funds pursuant to the LOI/EPA, other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of True North, its divisions and concepts to be materially different than those expressed or implied in such statements. The forward-looking statements included in this press release are made only as of the date hereof. True North cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, True North undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by True North.

SOURCE True North Energy Corporation

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