December 2013

The pools of acquisitions in the oil sector were expanded in order to establish the roots of a stability of own assets to prepare the ground for a value creation strategy.

True North Energy Corp. announced that it has signed a letter of intent (LOI) with Southridge Partners II, LP, an institutional investor, outlining terms for an equity purchase agreement (EPA) in the amount of $5 million, which if funded, would have created significant growth capital for True North.

Under terms of the LOI, upon execution of the EPA, and subject to certain closing conditions, True North would have the right, but not the obligation to sell, from time to time, up to $5 million of its common stock to Southridge under terms deemed favorable by management by submitting a Draw Down Notice in an amount that the company determines.

In order to Draw Down on the EPA, True North will need to have obtained effectiveness of a Form S-1 registration statement with the Securities and Exchange Commission, a process which it plans to initiate in 2014, funding permitting.  

“We are pleased to be partnering with Southridge, an institutional investor with a long, reliable history of providing capital to the small cap space. We believe this capital will be sufficient to fund our growth strategy,” commented Gilbert Steedley, CEO of True North, who continued,  “We believe that the terms of this agreement are favorable to our shareholders and provide True North with the best opportunity to execute its business plan and deliver long-term shareholder value. We are thankful for the confidence Southridge has shown in True North, our management, and our strategy.”

“True North Energy Corporation, with its recent collaboration agreements and its progress in improving its debt to asset ratio, provided us with the confidence necessary to commit to provide growth capital. We are excited to partner with True North and its seasoned management as they execute their strategy,” commented Stephen Hicks, Principal and CEO of Southridge. The closing of the EPA transaction is subject to the negotiation and execution of definitive agreements.

About Southridge
Southridge is a diversified financial holdings company that specializes in funding and advising small cap and growth companies in the public markets. Since 1996, the structured finance team at Southridge has made direct investments of over $1.75 Billion in over 300 companies globally. Southridge advises small public companies on a wide variety of corporate issues from the process of becoming a public company, to individualized financing techniques, to optimized balance sheet management. For further information about Southridge, please visit