Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

March 06, 2015 08:00 ET

Cygam Announces Corporate Update

CALGARY, ALBERTA--(Marketwired - March 6, 2015) - Cygam Energy Inc. (TSX VENTURE:CYG) ("Cygam" or the "Company") announced that on February 10, 2015, Cygam's Board of Directors met to identify, examine and consider strategic alternatives available to the Company, including, the sale of the Company, merger or other business combination, recapitalization, sale of all or a portion of the Company's assets, appointment of a receiver of the Company and/or its business or any combination thereof. Ultimately, the Board of Directors determined that the Company would cease all funding in respect of its Tunisian operations and terminate the employment of its Tunisian employees.

This announcement coincides with the release on SEDAR of a material change report which was previously filed on a confidential basis with securities regulators. The report was filed confidentially to allow Cygam time to reach an agreement with a third party for the disposition of certain of Cygam's Tunisian assets. The parties were unable to reach an agreement in the time required by the board of directors of Cygam. The Company will continue to consider alternatives with third parties with respect to its Tunisian business and related assets.

Forward-Looking Statements

Certain information set forth in this press release, contains forward-looking statements including management's and the Board of Directors' assessment of future plans regarding the strategic review process. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "may", "intention", "estimate", "would", "will" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, strategic alternatives available to Company, the terms of any transaction between Cygam and one or more third parties, or timing or completion of any such transactions and matters related or incidental thereto. No assurance can be given that any transactions will be agreed to between Cygam and one or more third parties, or if agreed, be acceptable to those from whom consent or approval will be necessary. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Cygam's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, delays resulting from or the inability to obtain required regulatory approvals, inability to retain and delays in retaining services, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, incorrect assessment of the value of transactions, failure to realize the anticipated benefits of transactions, ability to access sufficient capital from internal and external sources.

The foregoing list is not exhaustive. Additional information on these and other risks that could affect Cygam's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), or at Cygam's website (www.cygamenergy.com). 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 statements. The actual results, performance or achievement of Cygam could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, 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 statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

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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