XGEN Ventures Inc.

January 23, 2006 10:27 ET

XGEN Announces Appointment Of New Director And Plans For Private Placement Of Up To $600,000

TORONTO, ONTARIO--(CCNMatthews - Jan. 23, 2006) - The Board of Directors of XGEN Ventures Inc. (NEX:XGN.H) is pleased to announce the appointment of Mr. Roderick J. MacKenzie as Managing Director of the Company, effective as of this date. Mr. MacKenzie brings to the Company his knowledge, expertise and experience applied over a 30-year career as a senior executive in the oil and gas services industry in Canada and internationally. Mr. MacKenzie currently acts as a Director of several private corporations, including Global Hydrocarbons of Canada Ltd. and Global Sulphur Consulting Inc. Mr. MacKenzie will serve as a Director and provide business development consulting services to the Company. The Board welcomes the appointment of Mr. MacKenzie.

Mr. John O'Bireck has resigned as a director of the Company as of this date after six years of service to the Company. The Company acknowledges Mr. O'Bireck's service over the past six years.

The Board of Directors is also pleased to announce its intention to conduct a private placement of its common shares to secure a total of $600,000 of financing for the Company. The working capital generated from this private placement will be utilized in part to investigate new business opportunities for the Company and to retire a portion of its remaining trade debt of approximately $200,000 due to Lamerac Financial Corp.

The proposed terms of the private placement will be 2.4 million units of the Company, each unit consisting of one common share and one common share purchase warrant, offered at a price of $0.25 per unit. Each warrant will have an exercise price of $.30 and will expire 12 months from the date of the closing of the private placement.

Lamerac has indicated that it will convert up to $100,000 of its debt into common shares of the Company on the same terms and conditions as the private placement.

The Board of Directors also announced the grant of stock options in the aggregate number of 400,000 shares at a price of $.25 per share. Of this total 200,000 options have been granted to Mr. MacKenzie in his capacity as a director; the balance of the options have been awarded to employees and consultants to the Company.

Forward-Looking Statements

Certain statements contained in this press release may constitute forward-looking statements reflect the Company's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including among other things, those which are discussed under the heads "Risk Factors" and elsewhere in documents that the Company files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. The Company does not intend and does not assume any obligation, to update these forward-looking statements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Neither the TSX Ventures Exchange nor any securities regulatory authority has approved or disapproved of this news release.

Contact Information

  • Xgen Ventures Inc.
    Dan Amadori