Bowood Energy Inc. announces closing of private placement and increase to credit facility

    




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 CALGARY, Aug. 2, 2012 /CNW/ - Bowood Energy Inc. ("Bowood" or the "Company") is pleased to announce that it has closed its previously announced  private placement of units (the "Financing").   Pursuant to the Financing, Bowood issued a total of 120,000,000  units at a price of $0.05 per unit for gross proceeds of $6,000,000.    Each unit was comprised of one common share of Bowood and one warrant  exercisable to purchase one common share at an exercise price of $0.065  for a period of 36 months.   Securities issued pursuant to the  Financing will be subject to a four month hold period. 

 The Financing was co-led by a syndicate of agents consisting of GMP  Securities L.P., Macquarie Capital Markets Canada Ltd. and FirstEnergy  Capital Corp.   Directors and officers of Bowood purchased a total of  31,500,000 units under the Financing. 

 In conjunction with the closing of the private placement, Bowood's  credit facility with the Canadian Western Bank has been increased from  $5.7 million to $7.0 million. The net proceeds (approximately $5.7  million, after agent's fees and expenses) of the Financing will be used  to reduce outstanding indebtedness under Bowood's credit facility,  which may be subsequently redrawn to fund capital expenditures and for  general corporate purposes. 

 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 news  release.   

Bowood Energy Inc.


CONTACT:  Trent J. Yanko, P.Eng.President + CEOMatt JanischVice President, Finance + CFO4400, 525 - 8th Avenue S.W.Calgary, AB T2P 1G1Telephone: [phone] 


    

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