ARCHER PETROLEUM COMPLETES REORGANIZATION, NAME CHANGE AND CONSOLIDATION, ANNOUNCES CLOSING OF FINANCING AND MANAGEMENT CHANGES
April 30, 2010
Archer Petroleum Corp. (formerly “Agrotech Greenhouses Inc., the “Company”) is pleased to announce that it has closed its reactivation as a Tier 2 Oil & Gas Company on the TSX Venture Exchange (the “Exchange”) by completing the acquisition of 0856348 B.C. Ltd. (“PrivateCo”) and the oil and gas assets in the United States acquired by PrivateCo’s wholly-owned US subsidiary. The Company has changed its name to “Archer Petroleum Corp.” and will commence trading under this new name on the open on Friday, April 30, 2010 with the ticker symbol “ARK”. It has also completed a consolidation of its issued shares on a one for three basis. An aggregate 10,306,000 post-consolidation shares of the Company have been issued to acquire PrivateCo, and 5,000,000 warrants, each warrant entitling the holder to acquire one share of the Company for $0.45 on or before October 2, 2011. The securities issued to acquire PrivateCo are subject to a hold period expiring on August 30, 2010.
The Company is also pleased to announce that it has closed its private placement of 6,667,000 post-consolidation shares at Cdn$0.45 each raising gross proceeds of Cdn$3,000,000. An aggregate $210,010.50 and 466,690 warrants were issued as finders’ fees, each warrant entitles the holder to purchase one share of the Company at a price of $0.50 on or before April 29, 2012. The securities issued pursuant to the private placement are subject to a hold period expiring on August 30, 2010.
In connection with an overallotment of the private placement, the Company is issuing an additional 200,000 shares at Cdn$0.45 each to raise Cdn$90,000. An aggregate $6,300 and 14,000 warrants are being issued as finders’ fees, each warrant entitles the holder to purchase one share of the Company at a price of $0.50 on or before April 30, 2012. The securities being issued pursuant to this overallotment are subject to a hold period expiring on August 31, 2010.
As a result of the acquisition of PrivateCo and the financing, the Company now has issued and outstanding 32,656,044 shares, the fully diluted share capital is 42,0676,734 shares, and the Company has working capital of $3,500,000 approximately. An aggregate 6,310,833 shares are subject to a Value Security Escrow Agreement.
In conjunction with the reactivation, Mr. Darren Tindale has been appointed as the Chief Financial Officer of the Company in place of Robert McMorran, who will remain a director of the Company. Mr. Tindale is the CFO and a Director of Lions Gate Metals Inc., a Tier 1 Exchange listed company, and has experience in both public practice and the mining industry. Before joining the Company, Mr. Tindale worked for a number of years as Senior Accountant for a group of junior mining companies listed on the Exchange.
The business of the Company is the exploration and development of oil and gas properties, primarily in the United States. In particular, the Company has a 25% net working interest in approximately 4,700 net mineral acres in the Greater Joe Mill Project located within the highly-prolific Permian Basin in West Texas and on trend with the emerging Wolfberry trend currently being developed by the industry. The Company believes this project area has excellent oil potential and drilling efforts by industry participants have accelerated in recent years as a result of new completion methods and advancement in completion technologies.
ON BEHALF OF AGROTECH GREENHOUSES INC.
“Colin Bowkett”President
For further information contact:
Suite 880, 609 Granville Street, Vancouver, British Columbia, V7Y 1G5, Canada
Tel: (604) 683 - 7588 Fax: (604) 683 - 7589
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.