VGS Seismic Canada Inc.

VGS Seismic Canada Inc.

February 19, 2008 18:00 ET

VGS Seismic Canada to Issue Convertible Notes

CALGARY, ALBERTA--(Marketwire - Feb. 19, 2008) - VGS Seismic Canada Inc., (TSX VENTURE:VGS) ("VGS" or "the Company") is announcing its intent to issue one million dollars in convertible notes to its lender under its amended and restated credit agreement. The Company will use proceeds from this issue to partially fund previously reported ongoing commitments to create and purchase seismic data in Canada.

The convertible notes will bear interest at 9.5% per annum and are convertible to Class A common shares of the Company at the option of the lender at any time prior to the maturity date of February 16, 2010. Should the lender choose to convert the notes, the conversion price will include a 25% premium over the previous twenty trading day volume weighted average price ("VWAP) of VGS Class A common shares. At the close of markets on February 15, 2008, the twenty day VWAP was $0.41 per Class A common share, therefore conversion would be at a price of $0.51 per Class A common share. Conversion of the entire $1,000,000 note would cause VGS to issue 1,960,784 Class A common shares.

Based in Calgary, Alberta, VGS Seismic Canada Inc. identifies, creates and markets digital seismic data for licensing to oil and natural gas exploration companies. To date, the Corporation's growing data library is concentrated in British Columbia, Southern Alberta and Eastern Saskatchewan. VGS shares trade on the TSX Venture Exchange under the symbol VGS.

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

Contact Information

  • VGS Seismic Canada Inc.
    Scott Milroy
    Chief Financial Officer
    (403) 263-6050