Cygam Energy Inc.

Cygam Energy Inc.

September 04, 2012 09:39 ET

CYGAM Announces Appointment of David Taylor as President and Chief Executive Officer

CALGARY, ALBERTA--(Marketwire - Sept. 4, 2012) - CYGAM Energy Inc. (TSX VENTURE:CYG) ("CYGAM", or the "Company"), an emerging oil and gas company with interests in Tunisia and Italy, is pleased to announce that Mr. David Taylor has been appointed the President and Chief Executive Officer of the Company effective September 1, 2012. Mr. Taylor succeeds Mr. Giuseppe Rigo who will remain Chairman of the Board and Managing Director of CYGAM's wholly owned subsidiaries, Rigo Oil Company Tunisia Ltd. and Vega Oil S.p.A. in Italy.

Mr. Taylor has over 35 years of international experience in a wide variety of technical and senior management positions within the oil and gas industry, including most recently founding and holding the positions of President and Chief Executive Officer of Cirrus Energy Corporation (from June 2002 to April 2011).

Mr. Giuseppe Rigo, Chairman of the Board of Directors, stated, "I'm pleased and delighted to have a proven leader of Dave's caliber to step into the role of CEO of CYGAM. He is a proven executive in our industry and brings with him vast technical, financial and management experience. He will be an exceptional leader for CYGAM in the continuing successful execution of our growth strategy."

In connection with his appointment, Mr. Taylor has agreed to subscribe for 1,000,000 common shares of the Company at a price of $0.25 per share for aggregate gross proceeds of $250,000. The net proceeds of the private placement will be used to fund the Company's capital program and for general corporate purposes. The common shares issued to Mr. Taylor will be subject to a hold period of four months and one day from the closing date. The private placement is subject to the approval of the TSX Venture Exchange and is expect to close on or about September 25, 2012.

In addition, the Company has granted Mr. Taylor 4,672,000 options to acquire common shares of the Company exercisable at $0.21 per share for a variety of periods of up to five years. The options are subject to the following vesting conditions:

  • 672,000 of the options will immediately vest and expire in equal instalments on the first, second and third anniversaries of July 6, 2012;
  • 2.0 million of the options will vest on the date that the daily volume weighted average trading price (the "VWAP") of the common shares on the TSX Venture Exchange, or such other stock exchange where the majority of the trading volume of the Common Shares occurs (the "Exchange"), exceeds $0.75 for 44 consecutive trading days; and
  • 2.0 million of the options will vest on the date that the VWAP of the common shares on the Exchange exceeds $1.00 for 44 consecutive trading days.

The grant of the 4.0 million options subject to the performance vesting conditions described above is conditional on the approval of the TSX Venture Exchange and approval of the shareholders of the amendments to the Company's option plan at the shareholders meeting scheduled for September 25, 2012.

Forward-Looking Information

Certain information and statements contained in this press release constitute forward-looking information under applicable securities laws. Specifically this press release contains forward-looking information relating to: the private placement, including the closing thereof, the issuance of Common Shares, the gross proceeds and the use of proceeds; the vesting conditions of the options; and the of the option plan amendments. The forward-looking information contained in this press release speaks only as of the date of this press release and is expressly qualified by this cautionary statement. This forward-looking information is based on certain key assumptions regarding, among other things, the receipt of regulatory and shareholder approvals, industry conditions within the jurisdictions in which the Company operates, and global economic conditions. Furthermore, this forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking information. Such factors include, but are not limited to global economic conditions, a failure to obtain required regulatory and shareholder approvals, changes in laws and regulations and changes in how they are interpreted and enforced, increased competition, volatility of commodity prices, and the inability to complete the transactions or to obtain required regulatory approval. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. CYGAM's actual results, performance or achievement could differ materially from those expressed in, or implied by, this forward-looking information, or if any of them do so, what benefits that CYGAM will derive therefrom. CYGAM disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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