TSXV – BEN.H

VANCOUVER, BC, May 8, 2023 /CNW/ - Butte Energy Inc.  (TSXV: BEN.H) (the "Company") is pleased to announce that, further to its news release of April 26, 2023, the Company has closed its non-brokered private placement for gross proceeds of $250,000 (the "Private Placement").

In closing the Private Placement, the Company issued an aggregate of 1,250,000 units (each, a "Unit") at a price of $0.20 per unit consisting of 1,250,000 common shares (each, a "Common Share") and 1,250,000 share purchase warrants (each, a "Warrant").  All Warrants are exercisable at a price of $0.30 per share for one Common Share in the capital of the Company for a period of one year from the date of issuance, expiring May 8, 2024.

No finder's fees were payable by the Company in connection with the Private Placement.

All securities issued in connection with the Private Placement are subject to a four month and one day statutory hold period expiring on September 9, 2023. Proceeds from the financing will be used for general working capital purposes. 

Related Parties

Two insiders of the Company participated in the Private Placement and acquired an aggregate of 950,000 Units. The purchases by these insiders constitute "related party transactions" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuances are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as they are distributions of securities for cash and the fair market value of the Units issued to, and the consideration paid by, the insiders did not exceed 25% of the Company's market capitalization. No new insiders were created, nor any change of control occurred, as a result of the Private Placement.

On behalf of BUTTE ENERGY INC.

"Geir Liland"
Chief Executive Officer

Neither the 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.

SOURCE Butte Energy Inc.

View original content: http://www.newswire.ca/en/releases/archive/May2023/08/c5582.html