| July 23, 2010 |
| CGX Increases Previously Announced Offering |
TORONTO, ONTARIO--(Marketwire - July 23, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
CGX Energy Inc. (TSX VENTURE:OYL) ("CGX" or the "Company") is pleased to announced that the offering previously announced in a press release of the Company dated July 21, 2010 of up to 30,000,000 common shares of the Company (the "Common Shares") at a price of $0.50 per Common Share for aggregate gross proceeds of up to $15,000,000 (the "Original Offering") has been over-subscribed. As a result of this demand, the Company has decided to increase the size of the Original Offering from $15,000,000 to $17,500,000 (the "Upsized Offering"). This increase to the size of the Original Offering will result in an aggregate of 35,000,000 common shares of the Company being issued under the Upsized Offering. The syndicate of agents (co-lead by Cormark Securities Inc. and RBC Capital Markets Inc., and including Canaccord Genuity Corp., Dundee Securities Corporation, Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Toll Cross Securities Inc.) will continue to have an option, for a period of 30 days after the date of the closing of the Upsized Offering, to acquire an additional 5,000,000 Common Shares to cover over-allotments.
Additional information on CGX Energy Inc. may also be examined and/or obtained through the internet by accessing the website of CGX at www.cgxenergy.com.
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. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
Forward-Looking Statements:
This news release contains certain "forward-looking information" within the meaning of applicable securities law including statements regarding the proposed use of proceeds of the Offering. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, this press release contains forward-looking information regarding the size of the Revised Offering and the use of proceeds of the Revised Offering. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. These factors include the inherent risks involved in the exploration and development of oil and natural gas properties and the possibility of unanticipated costs and expenses. Completion of the proposed Offering is subject to certain risks and uncertainties including market risk with respect to marketing and pricing of the Common Shares, receipt of all required regulatory approvals, including from the TSX-V, completion of due diligence by the Agents and the satisfaction of all conditions to closing. For a description of the risks and uncertainties facing CGX and its business and affairs, readers should refer to CGX's Annual Information Form for the year ended December 31, 2009. CGX undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. | |