Desco Energy Ltd.

October 07, 2005 16:56 ET

Desco Energy Ltd. Completes Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - Oct. 7, 2005) - Desco Energy Ltd. (the "Corporation") successfully completed its initial public offering of 1,250,000 common shares (the "Common Shares") at $0.20 per share for gross proceeds of $250,000. As a result of this issuance, the Corporation has 5,250,000 Common Shares issued and outstanding. The Corporation has also granted options to acquire an aggregate of 525,000 Common Shares at an exercise price of $0.20 per share to the directors and officers of the Corporation, which will expire 5 years from the date of grant. In addition, the Corporation granted an option to acquire an aggregate of 125,000 Common Shares (the "Agent's Option") at an exercise price of $0.20 per share to Blackmont Capital Inc., who acted as agent for the offering. The Agent's Option will expire 12 months from the date the Corporation's Common Shares are listed on the TSX Venture Exchange Inc. (the "Exchange"). The Corporation is a capital pool company pursuant to Policy 2.4 of the Exchange.

Investors are cautioned that trading in the securities of a capital pool company should be considered highly speculative.

The Exchange has conditionally approved the listing of the Corporation's Common Shares on the Exchange and the Corporation now plans to make application to the Exchange for final listing approval. It is expected that the Corporation's trading symbol will be "CVX".

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Contact Information

  • Desco Energy Ltd.
    Robert J. Dales
    (403) 803-3884