Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

December 20, 2010 08:38 ET

Candax Comments on Listing Review Process

TORONTO, ONTARIO--(Marketwire - Dec. 20, 2010) -

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

Candax Energy Inc. ("Candax") (TSX:CAX) wishes to inform shareholders that the TSX press release that was issued on Friday, December 17th forms part of the listing review process, also known as a "de-listing review", a routine procedure when any company uses the financial hardship exemption described below.

As indicated in Candax's press release of December 14th describing the proposed debt restructuring plan (the "Debt Restructuring Plan"), Candax has made an application to the TSX for the listing of shares that would be issued pursuant to the debt restructuring. The TSX has advised Candax that application of the 'financial hardship' exemption from the requirement to seek shareholder approval automatically results in a TSX review to confirm that Candax continues to meet TSX listing requirements - this is a routine procedure when a listed company applies for this exemption. Candax has received confirmation from the TSX that Candax has until April 15, 2011 for the determination of whether it continues to meet the listing requirements of the TSX. Candax fully expects to be able to show that it meets applicable TSX listing requirements following completion of the Debt Restructuring Plan.

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in Tunis and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia and holds an interest in an exploration permit in Madagascar.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the oil and gas industry (including operational risks in exploration development and production at El Bibane; delays or changes in plans with respect to exploration or development projects or capital expenditures; the risk that the transactions with Geofinance under the Debt Restructuring Plan may not complete; the ability of Candax to continue to service its debt; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax to fund the capital and operating expenses necessary to achieve the business objectives of Candax, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax Energy Inc. should not place undue reliance on these forward-looking statements.

Contact Information

  • Candax
    Charlotte May
    Corporate Secretary
    416 364 3353
    cmay@candax.com
    or
    CHF Investor Relations
    Jeanny So
    Account Manager
    416 868 1079 ext. 225
    jeanny@chfir.com