Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

March 04, 2010 09:00 ET

Cygam Energy Announces Pricing of Offering of Units

CALGARY, ALBERTA--(Marketwire - March 4, 2010) -

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

CYGAM Energy Inc. ("Cygam" or the "Corporation") (TSX VENTURE:CYG) announced today that it has agreed with Octagon Capital Corporation, Byron Securities Ltd., Thomas Weisel Partners Canada Inc. and D & D Securities Company (collectively, the "Agents") to the pricing of the offering of up to $15 million of units of the Corporation (the "Units"), referred to in Cygam's press release of February 5, 2010 (the "Offering").

The Agents will offer on a reasonable efforts basis on behalf of the Corporation the Units at a price of $0.60 per Unit, each Unit being comprised of one common share of the Corporation and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share for $0.80 per share for a period of 18 months following the closing of the Offering. The Offering remains subject to all customary conditions and regulatory approvals, including that of the TSX Venture Exchange.

The Corporation has filed a preliminary short form prospectus dated February 4, 2010 and plans to file the (final) short form prospectus qualifying the distribution of the Units shortly.

The net proceeds of the Offering are intended to be used by Cygam to fund work on its existing properties in Italy and Tunisia, and for working capital and general purposes.

Cygam is a Calgary based exploration company with producing oil and gas properties in Canada and Tunisia and extensive international exploration concessions. The main focus of the Corporation is the acquisition, exploration and development of international oil and gas permits, primarily in Italy, Tunisia and the Mediterranean Basin. Cygam currently holds various interests in six exploratory permits in Italy and four exploratory permits in Tunisia encompassing approximately 3.5 million gross acres (approximately 1.8 million net acres before pending farmouts).

The common shares and warrants comprising the Units have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and, may not be offered, sold or delivered, directly or indirectly, in the United States or to or for the account or benefit of any U.S. person unless the securities are registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available. This press release does not constitute an offer to sell or solicitation of an offer to buy any securities, nor shall there by any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.

Forward Looking Statements

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Corporation's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to the proposed Offering and the use of proceeds from the Offering contain forward looking information. The Corporation's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Corporation disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Neither 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 this release.

Contact Information

  • Cygam Energy Inc.
    Dario Sodero
    President and Chief Executive Officer
    (403) 802-6983
    (403) 802-6984 (FAX)
    or
    Cygam Energy Inc.
    Ali Rawji
    Chief Financial Officer
    (403) 802-6983
    (403) 802-6984 (FAX)