TG World Energy Corp.

TG World Energy Corp.

July 21, 2005 11:47 ET

TG World Energy Corp. Completes Closing of $2,500,000 Equity Financing

CALGARY, ALBERTA--(CCNMatthews - July 21, 2005) - TG World Energy Corp. (TSX VENTURE:TGE) (the "Corporation") is pleased to announce the completion of its brokered private placement of an aggregate of 3,571,000 units (the "Units") of the Corporation (the "Offering") to subscribers (the "Subscribers") at a price of $0.70 per unit for gross proceeds to the Corporation of $2,500,000.

Each Unit consists of one common share and one-half of one share purchase warrant. Each full purchase warrant entitled the holder thereof to acquire one common share, at a price of $0.85 per share if the warrant is exercised within the first twelve months following closing and at $1.00 per share if the warrant is exercised at any time during the second year following closing.

The Units were offered for sale to accredited investors on a commercially reasonable efforts basis (the "Offering") by Canaccord Capital Corporation acting as agent (the "Agent").

Pursuant to the terms of the formal agency agreement (the "Agency Agreement") entered into between the Agent and the Corporation, the Corporation paid a commission to the Agent equal to 8% of the gross proceeds of the Offering and issued 357,100 share purchase warrants, on the same terms and conditions as the share purchase warrants issued to Subscribers, to the Agent, representing 10% of the number of Units sold by the Agent pursuant to the Offering.

In addition, pursuant to the terms of the Agency Agreement, the Agent exercised its option to receive, in lieu of a portion of its commission otherwise payable in cash, 110,715 Units (consisting of 110,715 common shares and 55,357 share purchase warrants) on the same terms and price as the Units issued to Subscribers.

All of the common shares and share purchase warrants issued to Subscribers and the Agent will be subject to a 4-month hold period in Canada in accordance with applicable securities laws.

TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • TG World Energy Corp.
    Clifford M. James
    President & CEO
    (403) 265-4506
    (403) 264-7028 (FAX)