Private Placement
TERREX ENERGY INC. ANNOUNCES PRIVATE PLACEMENT FINANCING FOR UP TO CDN $3.0 MILLION
CALGARY, Sep. 22, 2010 (Canada NewsWire via COMTEX News Network) --
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES/
TerrexEnergy Inc. (TSX-V - TER) ("Terrex") has arranged for anon-brokered private placement of up to 7,500,000 units (the"Units") at a price of
.40 per Unit for maximum gross proceedsof $3,000,000 (the "Offering"). Each Unit consists of two commonshares of Terrex (the "Common Shares") and one common sharepurchase warrant (the "Warrants"). Each Warrant entitles the holder toacquire one Common Share at any time prior to 4:30 p.m. (Calgarytime) on the date that is two years from the closing date uponpayment of the exercise price of
.25 per Common Share. If, atany time prior to the date that is two years from the closingdate, the daily volume weighted average trading price of theCommon Shares on the TSX Venture Exchange exceeds
.30 for atleast 30 consecutive trading days, Terrex may, within 30 days ofsuch occurrence, give an expiry acceleration notice to the holdersof Warrants and, if it does so, the Warrants will, unlessexercised, expire on the 30th day after the expiry acceleration noticeis given.
Terrex will pay a finder's fee of 5% to certainpersons in connection with the offering, including any finder whointroduced a subscriber to the Offering, payable in cash at thetime of closing, provided that no finder's fee will be payable inrespect of any amount subscribed for by the directors and officersof Terrex and, for certainty, excluding subscriptions introducedto the private placement by Terrex.
The Units (including theCommon Shares and Warrants) will be subject to a hold period thatwill expire four months and a day after the closing of theOffering. The Units (including the Common Shares and Warrants)will not be registered in the United States.
Terrex intends touse the net proceeds from the Offering: (i) to develop itsStrathmore property, primarily using enhanced oil recoverytechniques, (ii) to acquire interests in additional properties, and(iii) for general corporate capital.
Terrex Energy Inc. is aCalgary, Alberta based company engaged in the exploration for, anddevelopment and production of petroleum and natural gas in theWestern Canadian Sedimentary Basin. The Company is primarilyfocused on a strategy of growing reserves and production throughapplying proven, improved and enhanced oil recovery technologiesto existing under exploited, large original oil in-place medium andlight oil reservoirs. Terrex shares are listed and trade on the TSXVenture Exchange under the trading symbol "TER".
Neither theTSV Venture Exchange nor its Regulation Service Providers (as thatterm is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Thisnews release contains certain forward-looking statements andforward-looking information (collectively referred to herein as"forward-looking statements") within the meaning of Canadian securitieslaws. All statements other than statements of historical fact areforward-looking statements. Undue reliance should not be placed onforward-looking statements, which are inherently uncertain, arebased on estimates and assumptions, and are subject to known andunknown risks and uncertainties (both general and specific) thatcontribute to the possibility that the future events orcircumstances contemplated by the forward-looking statements willnot occur.
There can be no assurance that the plans, intentionsor expectations upon which forward looking statements are basedwill in fact be realized. Actual results will differ, and thedifference may be material and adverse to Terrex and itsshareholders. Forward-looking statements are based on Terrex'scurrent beliefs as well as assumptions made by, and informationcurrently available to, Terrex concerning business prospects,strategies, and market conditions. Although management considersthese assumptions to be reasonable based on information currentlyavailable to it, they may prove to be incorrect. By their verynature, forward-looking statements involve inherent risks anduncertainties (both general and specific) and risks that forward-lookingstatements will not be achieved. These factors may be found underthe heading "Business Risks" in Terrex's management's discussionand analysis dated August 18, 2010, a copy of which is availableat www.sedar.com. Readers are cautioned that this list of factorsthat may affect future results is not exhaustive.
Theforward-looking statements contained in this press release are madeas of the date hereof and Terrex does not undertake any obligation toupdate publicly or to revise any of the included forward-lookingstatements, except as required by applicable law. Theforward-looking statements contained herein are expresslyqualified by this cautionary statement.
SOURCE: Terrex Energy Inc.