Argosy Energy Inc.

Argosy Energy Inc.

September 01, 2009 09:18 ET

Argosy Energy Inc. Announces Change in Financing

CALGARY, ALBERTA--(Marketwire - Sept. 1, 2009) -


Argosy Energy Inc. (TSX:GSY) ("Argosy") announced today that its financing announced on August 26, 2009 will proceed initially by way of a bought deal private placement of special warrants and not by way of short form prospectus as Argosy is not eligible to file a short form prospectus until September 14, 2009.

The special warrant financing will be led by National Bank Financial Inc., and include Canaccord Capital Corp. and Maison Placements Canada Inc. (collectively, the "Underwriters"). The offering consists of the issuance on a bought deal basis of 4,200,000 special warrants (the "Special Warrants") at $1.25 per Special Warrant for gross proceeds to Argosy of $5,250,000 (the "Offering"). Argosy has also granted the Underwriters an over-allotment option to place up to an additional 600,000 special warrants on the same terms as the Special Warrants for additional gross proceeds of $750,000.

The proceeds from the Offering will be escrowed and not available to Argosy until the last to occur of: (i) disinterested shareholder approval of the Offering; (ii) issuance of a receipt by the securities regulatory authorities in Alberta, British Columbia, Saskatchewan and Ontario for a final prospectus (the "Offering Jurisdictions") qualifying the common shares of Argosy to be issued upon the exercise of the Special Warrants; and (iii) approval of the Toronto Stock Exchange of the listing of the underlying common shares of Argosy. If all such events do not occur by October 16, 2009, the proceeds will be returned to subscribers.

The Special Warrants will be exercisable by the holder at any time after the closing of the Offering for no additional consideration and all unexercised Special Warrants will be deemed to be exercised on the earlier of: (i) four months and a day following the closing of the Offering; and (ii) that day upon which a receipt is issued by the securities regulatory authorities in the Offering Jurisdictions for a final prospectus qualifying the common shares to be issued upon the exercise of the Special Warrants.

Management, directors and certain insiders have agreed to purchase approximately 2.0 million Special Warrants at the offering price.

The issue is subject to shareholder and normal regulatory approvals and the escrow closing of Special Warrants is expected on or about September 30, 2009.

Proceeds from the Offering will be used for the expansion of the capital programs in the Claresholm, Pearce, Saxon and Ansel/Edson areas of Alberta.

Argosy is a junior oil and gas company focused on the exploration and development of oil and natural gas in western Canada and trades on the TSX under the symbol "GSY".

Contact Information

  • Argosy Energy Inc.
    Mr. Peter Salamon
    President and CEO
    (403) 269-8846
    Argosy Energy Inc.
    Mr. Tom Dalton
    Vice President Finance and CFO
    (403) 269-8846