Crew Energy Inc.

Crew Energy Inc.

May 07, 2009 08:04 ET

Crew Energy Inc. Announces $43.4 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - May 7, 2009) -


Crew Energy Inc. ("Crew" or the "Company") (TSX:CR) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by GMP Securities L.P. and Macquarie Capital Markets Canada Ltd. and including Cormark Securities Inc., Clarus Securities Inc., TD Securities Inc., FirstEnergy Capital Corp., Tristone Capital Inc., CIBC World Markets Inc., BMO Nesbitt Capital Markets, and Scotia Capital Inc. pursuant to which the underwriters have agreed to purchase on a bought deal basis 7,000,000 common shares ("Common Shares") of Crew at a price of $6.20 per Common Share for aggregate gross proceeds of $43.4 million.

Proceeds of the offering will initially be used to pay down the Company's bank debt and then will be used to fund a portion of the Company's ongoing capital program. The Common Shares will be offered in all provinces of Canada (except Quebec) by way of a short form prospectus and by way of private placement in the United States pursuant to exemptions from the registration requirements pursuant to Rule 144A and/or Regulation D of the United States Securities Act of 1933.

Closing is expected to occur on or about May 28th, 2009 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

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

ADVISORY: This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the offering and the anticipated use of the net proceeds of the offering. Although Crew believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Crew 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 closing of the offering could be delayed if Crew is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by Crew might change if the board of directors of Crew determines that it would be in the best interests of Crew to deploy the proceeds for some other purpose, such as an acquisition.

The forward looking statements contained in this press release are made as of the date hereof and Crew undertakes no obligations 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.

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Crew Energy Inc.
    Dale O. Shwed
    President and Chief Executive Officer
    (403) 266-2088
    Crew Energy Inc.
    John G. Leach
    Vice President, Finance & Chief Financial Officer
    (403) 266-2088