C&C Energy Canada Ltd.

May 17, 2010 08:30 ET

C&C Energy Canada Ltd. (To Be Renamed C&C Energia Ltd.) Prices Initial Public Offering and Files Final Prospectus

CALGARY, ALBERTA--(Marketwire - May 17, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

C&C Energy Canada Ltd., to be renamed C&C Energia Ltd. ("C&C Energia" or the "Corporation"), is pleased to announce that it has filed a final prospectus (the "Final Prospectus") with the securities regulatory authorities in each of the provinces of Canada in connection with an initial public offering of its common shares and a secondary offering of common shares by C&C Investment Holdings LLC (the "Selling Shareholder"), an affiliate of Denham Commodity Partners Fund IV LP (the "Offerings"). The Offerings consist of a treasury offering by the Corporation of 7,647,059 common shares and a secondary offering by the Selling Shareholder of 4,117,647 common shares, in each case at a price of Cdn$8.50 per common share, for gross proceeds to the Corporation of approximately Cdn$65,000,000 and to the Selling Shareholder of approximately Cdn$35,000,000. The Selling Shareholder has granted the underwriters in the Offerings an over-allotment option to purchase up to an additional 1,764,706 common shares, such option being exercisable within 30 days following the closing of the Offerings.

The Corporation currently owns approximately 47% of the outstanding shares of C&C Energy (Barbados) Ltd. ("C&C Barbados"). Immediately prior to the Offerings, the Corporation will acquire all the securities of C&C Barbados that it does not own from the Selling Shareholder and other securityholders of C&C Barbados in exchange for newly issued common shares of the Corporation. The Corporation intends to change its name to C&C Energia Ltd. prior to the closing of the Offerings.

The Offerings are being conducted through a syndicate of underwriters led by FirstEnergy Capital Corp. and including GMP Securities L.P., Canaccord Genuity Corp., Cormark Securities Inc., Haywood Securities Inc., Macquarie Capital Markets Canada Ltd. and Scotia Capital Inc. A copy of the Final Prospectus is available on the SEDAR website at www.sedar.com.

The Corporation has received conditional approval for the listing of its common shares on the Toronto Stock Exchange upon completion of the Offerings, which is currently expected to occur on or about May 25, 2010. The Corporation's common shares have been assigned the trading symbol "CZE".

The Corporation, through C&C Barbados, is engaged in the exploration for, and the acquisition, development and production of, oil resources in Colombia. Its strategy is to develop producing oil assets by appraising and developing existing discoveries and exploring in areas assessed by management to be of low to moderate risk.

The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S. Securities Act is available. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

This press release contains forward-looking information within the meaning of applicable Canadian securities laws that involves known and unknown risks and uncertainties. Forward-looking information in this press release includes, but is not limited to, information concerning the expectations of the Corporation and the Selling shareholder with respect to the timing of the proposed initial public offering and secondary offering, the listing of the Corporation's shares and the acquisition of the securities of C&C Barbados. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual events could differ materially from those expressed or implied by the forward-looking information. These forward-looking statements are made as of the date of this press release and, other than as required by applicable securities laws, the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances.

Contact Information

  • C&C Energy Canada Ltd.
    Richard A. Walls
    President and Chief Executive Officer
    403-262-6046