Canaco completes $2.4-million private placement

Canaco Resources Inc (C:CAN)
Shares Issued 32,431,236
Last Close 4/10/2008 $0.23
Friday April 11 2008 - News Release

Mr. Andrew Smith reports

CANACO CLOSES ON $2.4 MILLION PRIVATE PLACEMENT

Canaco Resources Inc. has closed its non-brokered private placement previously reported in Stockwatch news dated Feb. 12, 2008, and March 20, 2008. The company raised a total of $2,402,700 and issued a total of 12,013,500 units at 20 cents per unit. Each unit consists of one common share and one-half of one common share purchase warrant. One full warrant entitles the holder to acquire one common share at 35 cents per share. From the total warrants issued, 5,531,750 warrants will expire on March 19, 2010, and 475,000 warrants will expire on April 10, 2010. The shares and any shares issued upon exercise of warrants are subject to a four-month hold period. From the total securities issued, 11,063,500 shares and any shares issued upon exercise of the underlying warrants are subject to a four-month hold period expiring on July 21, 2008, and 950,000 shares and any shares issued upon exercise of the underlying warrants are subject to a four-month hold period expiring on Aug. 12, 2008.

The company paid Ascenta Finance Corp. and its group of selling agents (which includes Haywood Securities Inc., Leede Financial Markets Inc., Canaccord Capital Corporation, Jennings Capital Inc., Topleft Securities Ltd., LOM Capital Limited and Loeb Aron & Company Ltd.) broker options to acquire up to a total of 798,350 units and cash commission of $159,670. The broker options entitle the holder to acquire units at a price of 20 cents per unit (each unit being one share and one-half warrant, having the same terms as sold to investors). Shares issued upon exercise of the options are subject to a four-month hold period expiring on July 21, 2008, and Aug. 12, 2008. Of the total broker options issued, 750,750 options will expire on March 19, 2010, and 47,600 options will expire on April 10, 2010. The share purchase warrants issuable upon exercise of the broker options will also expire on the same dates as the broker options.

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