/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
CALGARY, Oct. 21 /CNW/ - Alberta Oilsands Inc. ("AOS" or the "Company") (AOS - TSXV) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Capital Corporation and including Scotia Capital Inc., Genuity Capital Markets, Raymond James Ltd. and Octagon Capital Corporation, to issue, on a bought deal basis, 7,500,000 units ("Units") at a price of $0.40 per Unit and 12,778,000 common shares of AOS ("Common Shares") issued on a flow-through basis ("Flow-Through Common Shares") at a price of $0.45 per Flow-Through Common Share for aggregate gross proceeds of approximately $8.75 million. Each Unit will consist of one Common Share of AOS and one Common Share purchase warrant of AOS (a "Warrant"). Each whole Warrant will entitle the holder thereof to acquire one Common Share from the Company at a price of $0.50 per Common Share at any time that is before 24 months after the closing date of the offering. The Units and the Flow-Through Common Shares will be offered in certain Provinces of Canada by way of a short form prospectus.
AOS has also granted the underwriters an option (the "Over-Allotment Option") to purchase any combination of additional Units, at a price of $0.40 per Unit, and Flow-Through Common Shares, at a price of $0.45 per Flow-Through Common Share, for aggregate gross proceeds of up to approximately $1.3 million to cover over-allotments at the closing of the Offering, if any. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days following closing of the offering. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the offering would be approximately $10.05 million.
Proceeds of the offering will be used to fund a portion of the Company's ongoing capital program with the Flow-Through Common Share proceeds used to incur eligible Canadian exploration expenditures that will be renounced to subscribers effective on or before December 31, 2009.
Closing is expected to occur on or about November 17, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. 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 jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward-looking statements: This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the offering and the anticipated use of the net proceeds of the offering. Although AOS believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because AOS 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. The closing of the offering could be delayed if AOS is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by AOS might change if the board of directors of AOS determines that it would be in the best interests of AOS to deploy the proceeds for some other purpose.
The forward looking statements contained in this press release are made as of the date hereof and AOS undertakes no obligations 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.
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.
SOURCE ALBERTA OILSANDS INC.
For further information: For further information: Alberta Oilsands Inc., Suite 2800, 350 - 7th Avenue S.W., Calgary, Alberta, T2P 3N9, Shabir Premji, Executive Chairman, T: (403) 232-3341, F: (403) 263-6702, firstname.lastname@example.org; or Chad Dust, Executive Vice President Finance and Business Development, T: (403) 538-3191, F: (403) 263-6702, email@example.com; Company website: www.aboilsands.ca