Sure Energy Inc.

December 08, 2011 07:57 ET

Sure Energy Inc. Announces $18 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - Dec. 8, 2011) -


Sure Energy Inc. (TSX:SHR) ("Sure Energy" or "the Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Haywood Securities Inc. and including GMP Securities L.P., Desjardins Securities Inc. and Dundee Securities Ltd. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a "bought deal" basis, 12,000,000 common shares ("Common Shares") of Sure Energy at a price of $1.50 per Common Share for aggregate gross proceeds of $18.0 million (the "Offering"). The net proceeds of the Offering will be used to fund capital expenditures on the Company's properties in the Redwater and Virginia Hills areas.

Pursuant to the Offering, the Common Shares will be offered in all provinces of Canada, except Quebec, by way of a short form prospectus and by way of private placement in the United States pursuant to exemptions from the registration requirements pursuant to Rule 144A and/or Regulation D of the United States Securities Act of 1933.

Closing of the Offering is expected to occur on or about December 23, 2011 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

Sure Energy Inc. is a publicly traded oil and gas exploration and development company listed on the Toronto Stock Exchange under the symbol "SHR".

Advisory Regarding Forward-Looking Information

This press release contains forward-looking information concerning the closing date of the Offering and the anticipated use of the net proceeds of the Offering. Although Sure Energy believes that the expectations reflected in the forward-looking information is reasonable, undue reliance should not be placed on it because Sure Energy can give no assurance that it will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. The closing of the Offering could be delayed if Sure Energy 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 intended use of the net proceeds of the Offering by Sure Energy might change if the board of directors of Sure Energy determines that it would be in the best interests of Sure Energy to deploy the proceeds for some other purpose. The forward-looking information contained in this press release is provided as of the date hereof and Sure Energy undertakes no obligations to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Sure Energy within the United States. The securities of Sure Energy have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws. Accordingly, the Common Shares may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration is available.

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