Pulse Oil Announces Closing of Rights Offering

CALGARY, Alberta, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Pulse Oil Corp. (the “Company” or “Pulse”) (TSXV: PUL) reports the completion of the rights offering (the “Rights Offering”) to eligible holders of its common shares (the “Common Shares”), announced in its news release of December 7, 2023.

Pursuant to the Rights Offering, the Company issued a total of 103,910,942 Common Shares, the full amount of the Rights Offering, at a price of $0.04 per Common Share for aggregate gross proceeds of $4,156,437.68. A total of 49,074,871 Common Shares were issued under the basic subscription privilege, including 39,889,286 Common Shares to insiders of the Company, as a group, and 6,786,000 Common Shares to all other persons (“Non-Insiders”), as a group. In addition, a total of 2,399,585 Common Shares were issued under the additional subscription privilege, all to Non-Insiders. To the knowledge of the Company after reasonable inquiry, no person became an insider of Pulse as a result of the Rights Offering.

As of the closing of the Rights Offering, Pulse has 623,465,656 Common Shares issued and outstanding. The Rights Offering remains subject to receipt of final acceptance of the TSX Venture Exchange.

In connection with the Rights Offering and as previously announced, Pulse entered into a standby commitment agreement with each of CDN Trustee Limited TR CDN Trust and Andrew Ritchie TR AJ Trust No 2 (collectively, the “Standby Purchasers”), each dated December 7, 2023 (the “Standby Commitment Agreements”). Pursuant to the Standby Commitment Agreements, (i) the Standby Purchasers exercised their basic subscription privileges and, in addition thereto, purchased, in aggregate, 54,836,071 Common Shares available as a result of unexercised rights under the Rights Offering; and (ii) the Company issued, in aggregate 17,050,000 non-transferable Common Share purchase warrants (the “Bonus Warrants”) to the Standby Purchasers. Each Bonus Warrant is exercisable for 60 months from the date of issuance into one Common Share at a price of $0.05 per Common Share. No other fees or commissions were paid by the Company in connection with the Rights Offering.

Pulse Oil Corp. CEO, Garth Johnson, commented: “We are looking forward to a busy schedule of operations in 2024 using the proceeds from this financing. We’ve already begun the stimulation of one well in our Nisku E pool with a goal to add new oil production in February, followed by the drilling of a new well in the Nisku D pool with a short-term goal to add new production from drilling in Q1 of 2024 and longer term this well will provide Pulse with an ideally located enhanced oil recovery (“EOR”) production well when the EOR program injection solvent migrates toward this well, further increasing oil production. Finally, we are also pleased to announce that we have finalized all pipeline plans, costs and timing and Pulse will be completing this work in Q1/Q2 of 2024 while also converting another of our existing wells in our D pool to a water flood well in order to further increase ultimate oil recoveries within our D pool asset."