| August 17, 2010 |
| CGX Completes $20 Million Financing |
TORONTO, ONTARIO--(Marketwire - Aug. 17, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
CGX Energy Inc. (TSX VENTURE:OYL) ("CGX" or the "Company") is pleased to announced that it has closed its previously announced offering of common shares at
.50 per share (the "Offering"). Pursuant to the Offering, CGX has issued 40,000,000 common shares (the "Common Shares") of the Company for gross proceeds of $20,000,000 which included the full exercise of the over-allotment option. The Offering was co-led by Cormark Securities Inc. and RBC Capital Markets Inc., and included Canaccord Genuity Corp., Dundee Securities Corporation, Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Toll Cross Securities Inc. (collectively "the Agents"). As compensation for their services in connection with the Offering, an aggregate cash commission of $1,100,000 was paid to the Agents by the Company. Completion of the Offering is subject to receipt by the Corporation of the final approval of the TSX Venture Exchange in connection therewith.
Kerry Sully, President & CEO stated: "We're pleased with the support from existing and new shareholders. The funds from the Offering will be utilized to fund our 25% share of the costs associated with the drilling of the Jaguar well on our Georgetown License and to fund the preparatory expenses for the drilling of an exploration well on our Corentyne Licence."
Additional information on CGX Energy Inc. may also be examined and/or obtained through the internet by accessing the website of CGX at www.cgxenergy.com and is also available on SEDAR at www.sedar.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Forward-Looking Statements:
This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, this press release contains forward-looking information regarding the use of proceeds of the Offering. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of oil and natural gas properties and the possibility of unanticipated costs and expenses. For a description of the risks and uncertainties facing CGX and its business and affairs, readers should refer to CGX's Annual Information Form for the year ended December 31, 2009 which is available on SEDAR at www.sedar.com. CGX undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. |
|