News: Closing of Equity FinancingCoastal Energy Announces Closing of Equity Financing
HOUSTON, May 28 /CNW/ - Coastal Energy Company ("the Company") (TSX-V: CEN, AIM: CEO), an independent exploration and production company with assets in Southeast Asia, announces that it has completed its public offering of 5,000,000 common shares (the "Offered Shares") of the Company at a price of C$3.20 per Offered Share, raising gross proceeds of C$16,000,000 (the "Offering"). Thomas Weisel Partners Canada Inc. and Paradigm Capital Inc. acted as co-lead underwriters of a syndicate which also included Canaccord Capital Corporation, Macquarie Capital Markets Canada Ltd., Tristone Capital Inc., and CIBC World Markets.
The Underwriters have been granted an over-allotment option to purchase, on the same terms, up to an additional 750,000 common shares. This option is exercisable, in whole or in part, by the underwriters, in their sole discretion, at any time before June 26, 2009. Additional gross proceeds of Cdn$2.4 million will be realized, should the over-allotment option be exercised in full.
The Company expects to use the majority of the proceeds for general corporate purposes and debt reduction.
After closing of the Offering, the Company has 98,630,720 common shares issued and outstanding. The Offered Shares will commence trading on TSX-V immediately, and admission of the Offered Shares to trading on AIM will take place at 8.00 am (BST) on 29 May 2009.
Information concerning the Offering and the use of proceeds is contained in the Company's short form prospectus dated May 21, 2009, which is available under the Company's profile at www.sedar.com or on the Company's website at www.CoastalEnergy.com.
These securities have not been registered under United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.
"The TSX Venture Exchange does not accept responsibility
for the adequacy or accuracy of this release"