(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:
|Security||Current|| Following Proposed
|Warrants||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|
|Options|| 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.
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