VGS Seismic Canada Inc.

VGS Seismic Canada Inc.

March 14, 2008 17:22 ET

VGS Seismic Canada to Issue Convertible Notes

CALGARY, ALBERTA--(Marketwire - March 14, 2008) - VGS Seismic Canada Inc., ("VGS" or "the Company") (TSX VENTURE:VGS) is announcing its intent to issue up to four 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 be at a 25% premium over the previous twenty trading day volume weighted average price ("VWAP") of VGS common shares. At the close of markets on March 13, 2008, the twenty day VWAP was $0.42, therefore conversion would be at a price of $0.52 per share. Conversion of the entire $4,000,000 note would cause VGS to issue 7,692,308 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