Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

March 24, 2010 09:48 ET

Eaglewood Announces Closing of Private Placement Financing

CALGARY, ALBERTA--(Marketwire - March 24, 2010) -

(NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES)

Further to its press releases of February 23, 2010 and February 24, 2010, Eaglewood Energy Inc. ("Eaglewood") (TSX VENTURE:EWD) is pleased to announce that it has closed its previously announced special warrant private placement offering (the "Offering"), raising gross proceeds of $23,625,000.

The Offering was led by FirstEnergy Capital Corp. and included a syndicate of agents consisting of Paradigm Capital Inc., Cormark Securities Inc. and Macquarie Capital Markets Canada Ltd. (collectively, the "Agents"). A total of 13,500,000 special warrants of Eaglewood ("Special Warrants") were issued at a price of $1.75 per Special Warrant. Each Special Warrant entitles the holder thereof to receive, without the payment of any additional consideration, one common share of Eaglewood on the exercise or deemed exercise of the Special Warrant. The Special Warrants are exercisable by the holders thereof at any time and will be automatically exercised at 4:30 p.m. (Calgary time) on the earlier of: (i) the date a receipt ("Receipt") is issued by the applicable securities regulatory authorities for a (final) short form prospectus qualifying the common shares to be issued upon the exercise of the Special Warrants; and (ii) July 25, 2010. Eaglewood has agreed to use its best efforts to obtain the Receipt on or before the date that is 45 days following today's date (the "Prospectus Deadline Date"). If the Receipt is not issued by the Prospectus Deadline Date, each holder of Special Warrants shall receive 1.1 Common Shares for each Special Warrant held. The Agents received a commission equal to 5% of the gross proceeds of the Offering (being $1,181,250). 

The net proceeds from the Offering are expected to be used to fund ongoing exploration and development expenditures, working capital and for general corporate purposes.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements, including statements concerning the anticipated use of proceeds. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. The forward-looking statements included in this press release are made as of the date of this press release and Eaglewood disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

The securities offered have not been and will not be registered under the United States 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 requirement. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 THIS RELEASE.

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