Midway Energy Ltd.
TSX : MEL

Midway Energy Ltd.

March 18, 2011 11:17 ET

Midway Energy Ltd. Announces Increased Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - March 18, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Midway Energy Ltd. ("Midway" or the "Company") (TSX:MEL) is pleased to announce that it has agreed with a syndicate of underwriters led by GMP Securities L.P. (collectively the "Underwriters") to increase its previously announced bought deal financing from 5,450,000 class A common shares ("Common Shares") to 6,522,000 Common Shares at a price of $4.60 per Common Share for gross proceeds of $30,001,200. In addition, the Company has agreed to increase the over-allotment option, exercisable at the option of GMP on behalf of the Underwriters for a period of 30 days following the Closing Date, to acquire up to 652,200 Common Shares at $4.60 per Common Share for further gross proceeds of $3,000,120, which would increase the Offering to $33,001,320, if fully exercised. All other terms and conditions of the financing remain the same as previously announced.

The financing is being underwritten by a syndicate of underwriters led by GMP Securities L.P. (collectively, the "Underwriters"). The Offering is scheduled to close on or about April 7, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.

Proceeds of the Offering will be used to fund an increase in Midway's capital program and other general corporate purposes. The Common Shares will be offered in certain provinces of Canada by way of a short form prospectus.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirement of that Act. This press 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.

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Specifically, this press release contains forward-looking statements relating the closing date of the Offering. The forward-looking statements are based on certain key expectations and assumptions made by Midway, including assumptions concerning the timing of obtaining regulatory approvals and the state of the economy and the exploration and production business, which expectations and assumptions management of Midway believes to be reasonable at this time. Although Midway believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable at the date of this press release, undue reliance should not be placed on the forward-looking statements and information as Midway can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Offering could be delayed if Midway is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Offering will not be completed within the anticipated time or at all. The forward-looking statements contained in this press release are made as of the date hereof and Midway undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • Midway Energy Ltd.
    M. Scott Ratushny
    Chairman and C.E.O.
    (403) 216-2705
    or
    Midway Energy Ltd.
    Douglas K. Smith
    Chief Financial Officer
    (403) 216-2705