CALGARY, ALBERTA--(Marketwire - March 26, 2010) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE:SDX) is pleased to announce that, in connection with its previously announced short form prospectus offering of common shares on a bought deal basis (the "Offering"), the Company and the 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. (collectively, the "Underwriters"), have agreed to increase the size of the Offering to an aggregate of 142,500,000 common shares at a price of $0.40 per common shares for gross proceeds to Sea Dragon of approximately $57 million.
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.NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
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