Sea Dragon Energy Inc.
TSX VENTURE : SDX

Sea Dragon Energy Inc.

January 25, 2010 10:01 ET

Sea Dragon Energy Inc.: Announces Completion of Financing

CALGARY, ALBERTA--(Marketwire - Jan. 25, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Sea Dragon Energy Inc. ("Sea Dragon" or the "Corporation") (TSX VENTURE:SDX) is pleased to announce that it has completed the closing of its previously announced underwritten private placement financing, for total gross proceeds of C$12,501,500 (the "Financing"). Pursuant to the Financing, the Corporation has issued 22,730,000 special warrants ("Special Warrants") at a price of $0.55 per Special Warrant. The Financing was completed by a syndicate of underwriters, led by Thomas Weisel Partners Canada Inc. and including Maison Placements Canada Inc. The underwriters received a cash commission of 5% of the gross proceeds raised on the Financing.

The Underwriters have been granted an option to purchase, on the same terms, up to an additional 4,550,000 Special Warrants. This option is exercisable, in whole or in part, by the underwriters, in their sole discretion, at any time before February 24, 2010. Additional gross proceeds of approximately Cdn$2.5 million will be realized, should the option be exercised in full.

Each Special Warrant will entitle the holder thereof to receive one common share of the Corporation ("Common Share") on the exercise of the Special Warrant. The Special Warrants will be automatically exercised without any further action on the part of the holder, and for no additional consideration, on such date that is the earlier of: (a) the third business day after a receipt is issued for a final prospectus qualifying the Common Shares to be issued upon the exercise of the Special Warrants by the securities regulatory authorities in each of the provinces of Canada where the Special Warrants are sold; and (b) four months and a day following the date of issue of the Special Warrants. If a receipt for the final prospectus is not obtained on or before April 1, 2010, each holder of a Special Warrant will, upon the deemed exercise of the Special Warrants, receive 1.05 of a Common Share for each Special Warrant so exercised in lieu of one (1) Special Warrant.

The net proceeds of the Offering will be used to finance the US$8,000,000 million deposit of the Corporation's previously announced acquisition of a fifty (50%) percent participating interest in the Kom Ombo (Block-2) Concession and working capital for general corporate purposes. The Special Warrants shall be subject to a hold period under applicable securities laws until May 26, 2010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein 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 an applicable exemption from registration requirements.

For further information please see the website of the Company at www.seadragon.ca or the Company's filed documents at www.sedar.com.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading Risk Factors and elsewhere in the Company's filings with Canadian securities regulators. The Company does not assume any obligation to update any forward-looking statements, save and expect as may be required by applicable securities laws.

Sea Dragon is an international exploration and development company with a focus on the Middle East and an office in Cairo Egypt.

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 THE RELEASE.

Contact Information

  • Sea Dragon Energy Inc.
    Said Arrata
    President, CEO and Director
    (403) 457-5035
    or
    Sea Dragon Energy Inc.
    David Thompson
    Senior Vice President and Director
    (403) 457-5035
    or
    Brisco Capital Partners
    Scott Koyich
    President
    (403) 262-9888
    skoyich@briscocapital.com
    or
    Brisco Capital Partners
    Graeme Dick
    (403) 561-8989
    graeme@briscocapital.com