Cinch Energy Corp.
TSX : CNH

Cinch Energy Corp.

September 02, 2010 08:52 ET

Cinch Energy Announces Closing of $22.3 Million Financing

CALGARY, ALBERTA--(Marketwire - Sept. 2, 2010) -

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

Cinch Energy Corp. ("Cinch" or the "Company") (TSX:CNH) is pleased to announce the closing of its recently announced bought deal financing of 11,896,750 common shares ("Common Shares") at a price of $1.45 per Common Share (including 1,551,750 Common Shares issued on the full exercise of the over-allotment option granted to the underwriters) and 2,860,000 common shares issued on a flow through basis ("Flow Through Shares") at a price of $1.75 per Flow Through Share for aggregate gross proceeds of approximately $22.3 million. The financing was co-led by Dundee Securities Corporation, Canaccord Genuity Corp. and RBC Dominion Securities Inc. and included Peters & Co. Limited, Wellington West Capital Markets Inc., CIBC World Markets Inc., Cormark Securities Inc. and Raymond James Ltd. Net proceeds from the offering will initially be used to reduce bank indebtedness and fund a portion of the Company's ongoing capital program with the Flow Through Share proceeds used to incur eligible Canadian exploration expenditures that will be renounced to subscribers effective on or before December 31, 2010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Cinch in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. Person absent registration or an applicable exemption from the registration requirements of such Act or laws.

Forward-Looking Statements

This document contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the offering and management's plan. Although Cinch believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Cinch can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the net proceeds of the offering by Cinch might change if the board of directors of Cinch determines that it would be in the best interests of Cinch to deploy the proceeds for some other purpose. The forward-looking statements contained in this document are made as of the date hereof and Cinch undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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