Iteration Energy Ltd.
TSX : ITX

Iteration Energy Ltd.

April 03, 2007 08:38 ET

Iteration Energy Ltd. Announces $39 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(CCNMatthews - April 3, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Iteration Energy Ltd. (TSX:ITX) ("Iteration") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. and including Peters & Co. Limited, RBC Capital Markets, Wellington West Capital Markets Inc. and Cormark Securities Inc. under which they have agreed to purchase for resale to the public, on a bought deal basis, 7,000,000 common shares of Iteration, at a price of $5.60 per common share resulting in gross proceeds of $39,200,000.

This transaction is subject to certain conditions including normal regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The common shares will be offered in all provinces of Canada other than Quebec by way of short form prospectus. Closing is anticipated to occur on or about April 26, 2007.

Proceeds from this offering will be used to fund Iteration's 2007 capital expenditure program and for general corporate purposes.

Certain statements made herein contain forward-looking information, including statements concerning the anticipated closing date of the offering and the anticipated use of proceeds. Although Iteration believes these statements to be reasonable, the assumptions upon which they are based may prove to be incorrect. Closing could be delayed if Iteration cannot obtain necessary regulatory approvals within anticipated timelines, and will not be completed unless certain conditions customary for transactions of this kind are satisfied.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The common shares of Iteration will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Contact Information

  • Iteration Energy Ltd.
    Mr. Brian Illing
    President and CEO
    (403) 261-6883
    or
    Iteration Energy Ltd.
    Mr. Sean Johnson
    CFO
    (403) 261-6883
    Email: info@iterationenergy.com