Iona Energy Inc.
TSX VENTURE : INA

February 28, 2012 19:53 ET

Iona Energy Announces Filing of Preliminary Prospectus for an Offering of a Minimum of CAD$60 Million and a Maximum of CAD$80 Million of Common Shares

CALGARY, ALBERTA--(Marketwire - Feb. 28, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN UNITED STATES

Iona Energy Inc. ("Iona" or the "Company") (TSX VENTURE:INA) is pleased to announce that it has filed a preliminary short form prospectus in connection with a public offering of a minimum of CAD$60 million of common shares of the Company and a maximum of CAD$80 million of common shares (the "Offering"). The Offering is led by Casimir Capital Ltd., and includes a syndicate of agents consisting of Clarus Securities Inc., Mackie Research Capital Corporation, AltaCorp Capital Inc. and National Bank Financial Inc. (collectively, the "Agents"). Iona has also granted the Agents an over-allotment option to place, on the same terms and conditions as the Offering, up to an additional 15% of the total number of common shares sold in connection with the Offering. The option is exercisable, in whole or in part, by the Agents at any time up until 30 days after closing of the Offering. The Offering is being made in each of the provinces of Canada, other than Quebec. Closing of the Offering is expected to occur on or about March 27, 2012, and is subject to receipt by the Company of credit approval for its syndicated credit facility as further described in the Company's news release dated February 28, 2012 and other customary regulatory approvals.

The Company has agreed with the Agents that the net proceeds of the Offering, including any net proceeds received upon the exercise of the over-allotment option granted to the Agents, will be used by the Company: (i) to fund the Company's development of its Kells oil assets; (ii) to acquire the West Wick oil assets; (iii) for development engineering of the Orlando oil field; (iv) for general and administrative expenses; and (v) for working capital and general corporate purposes.

A preliminary prospectus containing important information relating to the Offering has been filed with the securities commissions or similar authorities in each of the provinces of Canada, other than Quebec. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from the Agents c/o Casimir Capital Ltd. (Suite 2205, 520-3rd Avenue S.W., Calgary, Alberta, T2P 0R3 (Attention: Matt Sobolewski)), and are also available electronically at www.sedar.com. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the (final) prospectus has been issued.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "intend", "expect", "may", "will", or similar words suggesting future outcomes. In particular, this news release contains forward-looking statements relating to: (1) the gross proceeds of the Offering; (2) anticipated timing of closing of the Offering; (3) the proposed use of proceeds of the Offering; (4) the receipt by the Company of credit approval; and (5) the exercise of the over-allotment option granted to the Agents.

Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as changes in general economic conditions in Canada, the United States, the United Kingdom and elsewhere, changes in the financial markets in Canada, the United States, the United Kingdom and elsewhere, the volatility of prices for oil and gas and other commodities, commodity supply and demand, fluctuations in currency and interest rates, the ability to obtain credit approval for the syndicated credit facility and all other required regulatory approvals on a timely basis and on satisfactory terms, and new laws and regulations (domestic and foreign). Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.

The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to publicly update or to revise any of those forward-looking statements, except as required by applicable Canadian securities laws. The forward-looking statements contained herein are expressly qualified by this cautionary statement. Closing of the Offering could be delayed if Iona cannot obtain necessary approvals within anticipated timelines and will not be completed unless certain conditions customary for transactions of this kind are satisfied.

The securities offered have not been and will not be registered under the United States 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 requirement. This news 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.

About Iona Energy:

Iona Energy Inc. is an oil and gas exploration, development and production company focused on oil and gas development and exploration in the United Kingdom's North Sea.

Additional information relating to the Company is available on SEDAR at www.sedar.com.

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.

Contact Information

  • Iona Energy Inc.
    Neill A. Carson
    Chief Executive Officer
    +011 (44) 7919 057989

    Iona Energy Inc.
    Brad G. Gunn
    Chief Financial Officer
    (403) 775-7442