VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 22, 2011) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRESERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION,DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITEDSTATES.
Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco" or the "Company") ispleased to announce it has completed its previously announced boughtdeal financing for aggregate gross proceeds to Canaco of $119,880,000and aggregate gross proceeds to SinoTech (Hong Kong) Corporation Limited("SinoTech") of $43,200,000. A syndicate of underwriters includingCanaccord Genuity Corp. and TD Securities Inc. (the "Underwriters")purchased an aggregate of 30,200,000 common shares (the "Common Shares")of the Company, of which 8,000,000 Common Shares were purchased on asecondary basis from SinoTech, at a price of $5.40 per share. TheCompany has also granted the Underwriters an over-allotment option,exercisable for a period of up to 30 days following the closing, topurchase from the Company up to an additional 3,330,000 Common Shares ata price of $5.40 per share for additional gross proceeds to Canaco ofup to $17,982,000.
Following the completion of the financing, SinoTech currentlyholds 40,000,000 Common Shares, representing approximately 20% of theCompany on an undiluted basis.
The securities offered have not been, and will not be,registered under the U.S. Securities Act of 1933, as amended (the "U.S.Securities Act") or any U.S. state securities laws, and may not beoffered or sold in the United States or to, or for the account orbenefit of, United States persons absent registration or any applicableexemption from the registration requirements of the U.S. Securities Actand applicable U.S. state securities laws. This news release shall notconstitute an offer to sell or the solicitation of an offer to buysecurities in the United States, nor shall there be any sale of thesesecurities in any jurisdiction in which such offer, solicitation or salewould be unlawful.
Canaco also announces a correction to the price of 7,225,000options granted on December 3, 2010 to certain directors, officers andconsultants. The exercise price will be $4.88 per share, rather than$4.56 per share, and the expiry date of December 3, 2015 will remain thesam