Sea Dragon Announces $45 Million "Bought Deal" Financing
8:09 AM ET, March 26, 2010
CALGARY, ALBERTA, Mar 26, 2010 (Marketwire via COMTEX) -- NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (SDX) is pleased to announce that it has entered into an agreement with a syndicate of underwriters, co-led by GMP Securities L.P. and Thomas Weisel Partners Canada Inc. and including Genuity Capital Markets, FirstEnergy Capital Corp. and Maison Placements Canada Inc. pursuant to which the underwriters have agreed to purchase on a bought deal basis pursuant to a short form prospectus 112,500,000 common shares ("Common Shares") at a price of
.40 per Common Share for gross proceeds to Sea Dragon of approximately $45 million (the "Offering").
Proceeds of the Offering will be used by Sea Dragon to pay the balance of the consideration of approximately US$35 million due to Dana Gas Egypt Ltd. ("DGE") in connection with Sea Dragon's recent acquisition of a fifty (50%) percent participating interesting the Kom Ombo (Block-2) Concession located approximately 1,000 kilometers south of Cairo in the West Bank of the Nile River, to pay its share of past and future exploration and development costs on the Kom Ombo Concession and for general working capital.
The Offering will be an underwritten public issue in all provinces of Canada, excluding Quebec, by way of a short form prospectus. The Offering will also be extended to Qualified Institutional Buyers in the United States pursuant to the registration exemptions provided by Rule 144A and/or Regulation D of the Securities Act of 1933, as amended, and internationally as permitted. Closing is expected to occur on or about April 19, 2010 and is subject to certain conditions, including but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
Sea Dragon is an international exploration and development company with a focus on North African and Sub-Saharan Africa and an office in Cairo Egypt.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration, or applicable exemption from the registration requirements. 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.
For further information please see the website of the Company at www.seadragonenergy.com or the Company's filed documents at www.sedar.com.
Forward Looking Information
Certain statements made herein contain forward-looking information, including statements concerning the anticipated closing date of the Offering, the anticipated use of proceeds and the ongoing exploration and development plans and costs associated with the Kom Ombo Concession. Although Sea Dragon believes these statements to be reasonable, the assumptions upon which they are based may prove to be incorrect. In particular, the closing of the Offering may be delayed unless and until certain conditions customary for transactions of this kind are satisfied.
SOURCE: Sea Dragon Energy Inc.
Sea Dragon Energy Inc.
Said Arrata
President, CEO and Director
(403) 457-5035
Sea Dragon Energy Inc.
David Thompson
Senior Vice President and Director
(403) 457-5035
Brisco Capital Partners
Scott Koyich
President
(403) 262-9888
skoyich@briscocapital.com
Brisco Capital Partners
Graeme Dick
(403) 561-8989
graeme@briscocapital.com
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