Strata-X Announces Completion of Consolidation and Closing of First Tranche of Financing

DENVER, BRISBANE, Australia and VANCOUVER, British Columbia, July 15, 2018 (GLOBE NEWSWIRE) -- STRATA-X ENERGY LTD - The directors and management of Strata-X Energy Ltd. ("Strata-X" or the "Company") (TSX-V:SXE) (ASX:SXA) announce that the consolidation of the common shares of the Company (the "Shares") on the basis of three (3) post-consolidated Shares for every five (5) pre-consolidated Shares (the "Consolidation") has been completed.

The Consolidation was completed in order to ensure compliance with TSX Venture Exchange capital raising requirements to undertake a private placement to sophisticated investors of 27.1 million CDIs at A$0.05 per CDI for gross proceeds of A$1,355,000 (the "Placement").  Each CDI will represent one common share of Strata-X and will rank equally with existing CDIs. All CDIs issued pursuant to the Placement are to be tradeable and listed on the Australian Securities Exchange.   

The Company's common shares will continue to be traded on the TSX Venture Exchange on a post-Consolidation basis and under a new CUSIP number ? 86271T305 / ISIN number ? CA86271T3055.

The Company's common shares are scheduled to begin trading on a post-Consolidation basis on the TSX Venture Exchange at market open on July 16, 2018. A letter of transmittal will be mailed to all registered shareholders with instructions on how to exchange existing share certificate(s) for new share certificate(s). Additional copies of the letter of transmittal can be obtained through Computershare Investor Services Inc. Until surrendered, each certificate formerly representing common shares of the Company will be deemed for all purposes to represent the number of common shares to which the holder thereof is entitled as a result of the Consolidation.

No fractional shares will be issued as a result of the Consolidation.  Shareholders who would otherwise be entitled to receive a fraction of a common share will be rounded to the nearest whole number of common shares and no cash consideration will be paid in respect of fractional shares.

The exercise price and number of common shares of the Company issuable upon the exercise of any outstanding stock options, warrants or other convertible securities will be proportionately adjusted to reflect the Consolidation.

The Company does not intend to change its name or seek a new stock trading symbol from the TSX Venture Exchange or the Australian Securities Exchange in connection with the Consolidation.

The Company also announces that it has closed the first tranche of the Placement concurrent with the Consolidation. The first tranche of the financing consisted of 10,900,000 CDIs to raise A$545,000 at a price of A$0.05 per CDI.

Directors, and others, have committed to subscribing for A$810,000 in a subsequent and final tranche of the Placement, subject to shareholder approval. The aggregate gross proceeds from both placements will be A$1,355,000. 

The Company has paid finder's fees in the amount of A$18,000 and 210,000 common shares. The Placement is subject to exchange (TSX-V) acceptance. All of the securities issued pursuant to this offering will have a hold period in Canada expiring on November 17, 2018. The Company will use the Placement proceeds on an initial appraisal program of Strata-X's 100% owned, 680,000 acre Serowe CSG Project in the Republic of Botswana, which is expected to commence in the 4^th quarter 2018, along with final payments to complete a transaction to acquire 100% of the Project. Proceeds will also be used for general working capital.

About Strata-X

Strata-X is a Denver, Colorado (USA) based company and is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in the States of California and Illinois in the United States of America and the Republic of Botswana. Strata-X has 53,894,984 common shares outstanding (post-Consolidation and pre-Placement) and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.

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This announcement was made in Canada for the TSX.V and in Australia for the ASX.
 
Public documents for Strata-X Energy Ltd. can be found at SEDAR (Canada) (www.sedar.com) and ASX.com.au (Australia).
 
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which relate to future events or future performance, including but not limited to, the completion and size of the Placement, receipt of regulatory approvals and timing thereof, the Corporation's business strategies and plans for the use of such Placement proceeds, capital expenditure programs and estimates relating to timing and costs, and reflect management's current expectations and assumptions, including, but not limited to the timing and receipt of necessary regulatory approvals and third party approvals and completion of the Placement and stability of general economic and financial market conditions. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", and similar expressions is intended to identify forward-looking statements. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties, including imprecision in estimate capital expenditures and operating expenses, stock market volatility, general economic and business conditions in North America and globally, risks associated with liquidity and capital resource requirements, that may cause future results to differ materially from those expected, and the forward-looking statements included in this news release should not be unduly relied upon. See also "Risks Factors" in the Company's Annual Information Form available on SEDAR at www.sedar.com. Those factors are not, and should not be construed as, being exhaustive. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
 
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.