(TSX-V | OYL)
TORONTO, May 10, 2013 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX" or
the "Company") announces the proposed consolidation of its issued and
outstanding common shares on a basis of 10 pre-consolidated shares for
each post-consolidation share, subject to shareholder approval and TSX
Venture Exchange approval. The proposed consolidation is to be put
before shareholders at the Company's Annual and Special Meeting of
shareholders to be held on June 26, 2013. The name of the Company will
not be changed in conjunction with the Consolidation.
The consolidation is being proposed to reduce volatility in the stock
and to make it more accessible for institutional investors.
Should the consolidation be approved, the Company will also consolidate
its issued and outstanding warrants and options on a ten-for-one basis,
with the result that each consolidated warrant and option would entitle
the holder to acquire one common share in the capital of the Company at
an exercise price equal to ten times its original exercise price. The following chart summarizes the Company's current capital structure
and estimated capital structure following the proposed consolidation:
42,857,142 warrants at an exercise price of $0.60
4,285,714 warrants at an exercise price of $6.00
370,089,000 warrants at an exercise price of $0.17
37,008,900 warrants at exercise price of $1.70
4,359,730 options with exercise prices
ranging between $0.30 and $1.80
435,973 options with exercise prices
ranging between $3.00 and $18.00
Full details regarding the proposed consolidation will be included in
the management information circular provided in connection with the
Annual and Special Meeting of Shareholders.
About CGX Energy
CGX Energy is a Canadian-based oil and gas exploration company focused
on exploration in the Guyana-Suriname Basin.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains forward-looking statements. Forward-looking
statements are 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. The forward-looking statements are based on certain key
expectations and assumptions made by CGX. Although CGX believes that
the expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because CGX can give no
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very nature
they involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of
factors and risks. In addition to other risks that may affect the
forward-looking statements in this press release and those set out in
CGX's management discussion and analysis of the financial condition and
results of operations for the year ended December 31, 2012. The
forward-looking statements contained in this press release are made as
of the date hereof and CGX undertakes no obligation to update publicly
or revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so
required by applicable securities laws.
SOURCE: CGX Energy Inc.
For further information:
please contact Charlotte May, Communications Manager at (416) 364-3353 or firstname.lastname@example.org.