AUSTIN, Texas, July 27 /PRNewswire-FirstCall/ -- Laredo Oil,
Inc. ("Laredo Oil") (OTC Bulletin Board: LRDC), announced today
that it entered into an agreement on July
26, 2010 with an institutional investor for the private
placement of 1,000,000 shares of its common stock and warrants to
purchase 750,000 shares of its common stock for an aggregate
purchase price of $500,000, or
$0.50 per share. Laredo Oil closed
the transaction on July 27, 2010. The
warrants are immediately exercisable following issuance, have a
term of exercise of 5 years and an exercise price of $0.50 per share. The shares of common stock
offered in the private placement and the shares issuable upon
exercise of the warrants have piggy-back registration rights if
Laredo Oil elects to file a registration statement in the future,
subject to customary underwriter cut-backs.
Laredo Oil plans to use the net proceeds of the transaction for
general corporate purposes.
"This financing is the next milestone in our overall strategy
and is indicative of institutional interest in our Underground
Gravity Drainage™ business model," says Mark See, Chairman and CEO of Laredo Oil.
The Underground Gravity Drainage™ ("UGD™") business method
consists of using customary tunneling practices to go underneath
mature oil fields that meet our specific criteria. From an
underground chamber below the reservoir, inexpensive holes are
drilled into the oil formation from which stranded reserves are
produced.
Sutter Securities Incorporated is acting as the exclusive
placement agent in the transaction.
The shares and warrants offered in the private placement and the
shares issuable upon the exercise of the warrants have not been
registered under the Securities Act of 1933, as amended, or state
securities laws, and may not be offered or sold in the United States without being registered
with the Securities and Exchange Commission ("SEC") or through an
applicable exemption from the SEC registration requirements. The
shares of common stock and warrants were offered only to accredited
investors.
ABOUT LAREDO OIL INC.
Laredo Oil, Inc. (www.laredo-oil.com) is an exploration and
production company specializing in Enhanced Oil Recovery techniques
targeting mature and declining oil fields. Laredo Oil plans to
acquire targeted oil fields and use its unique UGD™ model to
profitably recover stranded oil reserves previously thought to be
incapable of economic recovery. Our common stock is listed on the
OTC Bulletin Board under the symbol, "LRDC".
This press release and the statements made by Laredo Oil, Inc.
in this press release may be forward-looking in nature and are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
describe the Company's future plans, projections, strategies and
expectations, and may be identified by words such as "expects",
"anticipates", "intends", "plans", "believes", "seeks", "estimates"
or words of similar meaning. These forward-looking statements are
based on assumptions and involve a number of risks, uncertainties,
situations and other factors that may cause our or our industry's
actual results, level of activity, performance or achievements to
be materially different from any future results, level of activity,
performance or achievements expressed or implied by these
statements. These factors include changes in interest rates, market
competition, changes in the local and national economies, and
various other factors detailed from time to time in Laredo Oil,
Inc. SEC reports and filings, including our Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form
8-K. The Company undertakes no obligation to update publicly any
forward-looking statements to reflect new information, events or
circumstances after the date hereof to reflect the occurrence of
unanticipated events.
SOURCE Laredo Oil, Inc.