Toronto, Ontario--(Newsfile Corp. - June 19, 2014) - GC-Global Capital Corp. (TSXV: GDE.A) ("Global Capital") and Advantagewon Oil Corp. ("AOC") are pleased to announce the completion of a $1,000,000 secured operating line agreement (the "Operating Line") to be used for the upcoming summer drilling program on Advantagewon Oil's Saratoga oil property in the state of Texas.
The Operating Line will be drawn down by way of an initial advance of up to $600,000 for the drilling of the first well. The balance of the Operating Line is to be used for the drilling of a third well on the same property. The operating line matures in 12 months and bears interest at 2 per cent per month, payable monthly. In consideration of the Operating Line, AOC shall pay to Global Capital a fee in the amount of $24,000 at the time of the initial advance and $16,000 at the time of the second advance, as well as a standby fee equal to 0.5/12% of the unused portion of the Operating Line payable monthly in arrears. As further consideration for the advances, Global Capital will be issued an 8% equity position ("Bonus Shares") in Advantagewon Oil in the form of common shares to be issued in two tranches. On the date of the initial advance, AOC shall issue to Global Capital 4.8% Bonus Shares and on the date of the second advance, AOC shall issue to the Global Capital 3.2% Bonus Shares. The Parties also executed an amendment to the terms of the $257,500 loan dated January 16, 2014 to extend the repayment schedule by six months to December 16, 2014 and amend the annual interest payable from 24% to 36% per annum. Jason Ewart, CEO of Global Capital states, "We are pleased with the success to date of Advantagewon Oil's drilling program which we believe has increased the underlying value of their Saratoga oil property."
Advantagewon Oil Corp. was originally formed to take advantage of opportunities in the Texas oil patch. Management's focus is to build AOC into a substantial dividend paying company focused on smaller oil plays in Texas.
About GC-Global Capital Corp.
Global Capital is a merchant bank, which provides bridge loan services (asset back/collateralized financing), to companies across many industries such as oil & gas, mining, real estate, manufacturing, retail, financial services, technology and biotechnology. For further information, please contact Jason G. Ewart at (416) 488-7760 or visit Global Capital's website at www.gcglobalcapital.ca.
About Advantagewon Oil Corp.
Advantagewon Oil Corp. is a Texas based oil production company. For further information, please contact Paul Haber, the Executive Chairman and Interim Chief Executive Officer, at phaber@blackbirchcap.com.
Cautionary Statements
This news release contains certain "forward looking statements". Such forward-looking statements involve risks and uncertainties. The results or events depicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
