Paris Energy Inc.
TSX VENTURE : PI

May 03, 2011 13:26 ET

Paris Energy Inc. Announces Private Placement

CALGARY, ALBERTA--(Marketwire - May 3, 2011) -Paris Energy Inc. (TSX VENTURE:PI) ("Paris" ) is pleased to announce that it intends to complete a non-brokered private placement of 2,668,000 common shares of Paris (the "Common Shares") as a price of $0.075 per share for a total consideration of $200,100 (the "Private Placement"), subject to receipt of all applicable regulatory approvals.

Lamond Investments Ltd ("Investments") and Humboldt Capital Corp. ("Humboldt") have each agreed to subscribe for 1,334,000 Common Shares pursuant to the Private Placement. Robert W. Lamond ("Lamond") owns 100% of Investments and 70.6% of the outstanding shares of Humboldt. Lamond holds 225,284 Common Shares and Humboldt holds 1,817,451 Common Shares, or an aggregate of 21.4% of the issued and outstanding Common Shares, and a $330,000 principal amount convertible secured debenture due on October 7, 2011 (the "Debenture") which is convertible into 5.5 million additional Common Shares. Following completion of the Private Placement, Lamond and Humboldt will hold approximately 39% of the issued and outstanding Common Shares, (58% assuming the full conversion of the Debenture).

Neither Paris nor Humboldt has knowledge of any material information concerning Paris or its securities that has not been generally disclosed.

The Common Shares issued pursuant to the Private Placement will be subject to a hold period of four months and one day from the closing date as well as other restrictions with respect to sales from control positions.

The proceeds of the Private Placement will be used by Paris for the repayment of certain outstanding debt obligations.

Paris anticipates closing the private placement on or about May 16 , 2011.

FORWARD-LOOKING STATEMENTS

Certain information and statements contained in this press release constitute forward-looking information, including, without limitation, expectations regarding the completion of the private placement and the timing thereof, receipt of regulatory approval, the intention of Humboldt to subscribe for Common Shares, Humboldt's ownership of Common Shares and the use of proceeds. These forward-looking statements are based upon the opinions, expectations and estimates of management as at the date the statements are made. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, the inability to complete the private placement or to obtain the required regulatory approval. 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. Paris's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits that Paris will derive therefrom. Paris 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 law.

Neither the TSX Venture Exchange nor its Regulation Service 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

  • Paris Energy Inc.
    John G.F. McLeod
    President
    (403) 264-5545
    (403) 269-9890 (FAX)

    Paris Energy Inc.
    Robert W. Lamond
    Chairman of the Board
    (403) 269-9889
    (403) 269-9890 (FAX)

    Paris Energy Inc.
    1800, 633 - 6th Avenue S.W.
    Calgary, Alberta T2P 2Y5