Cirrus Energy Corporation announces "bought deal" financing


    CALGARY, Aug. 2 /CNW/ - Cirrus Energy Corporation ("Cirrus" or the
"Company") (TSX-V:CYR) is pleased to announce that it has entered into an
agreement to sell to a syndicate of underwriters, on a "bought deal" basis,
13 million common shares at a price of C$2.35 per common share for gross
proceeds of C$30,550,000. The syndicate will be led by Tristone Capital Inc
and includes Clarus Securities Inc. and Jennings Capital Inc. (the
"Underwriters"). In addition, the Company has also granted to the Underwriters
an over-allotment option, exercisable in whole or in part at any time prior to
the closing date, to purchase that number of additional common shares equal to
15% of the number of common shares sold pursuant to the offering, at an issue
price of $2.35 per common share. If the over-allotment option is exercised in
full, the gross proceeds of the offering will be C$35,132,500 from the sale of
14,950,000 common shares. The offering will be made in the provinces of
British Columbia, Alberta, Saskatchewan, Manitoba and Ontario by way of short
form prospectus. The offering is scheduled to close on or about
August 23, 2007.
    Cirrus plans to use the net proceeds of this offering to fund the
development of its international oil and gas assets and for general corporate

    This news release shall not constitute an offer to sell or the
solicitation of any offer to buy the securities in any jurisdiction. The
common shares may be offered or sold in other eligible foreign jurisdictions
and to U.S. buyers on a private placement basis pursuant to an applicable
exemption from registration requirements in Rule 144-A or Regulation D of the
United States Securities Act of 1933, as amended.

    Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and currently has 47.5 million fully diluted common
shares outstanding.

    Forward-Looking Statements

    This press release may include forward-looking statements including
opinions, assumptions, estimates and expectations of future production, cash
flow and earnings. When used in this document, the words "anticipate,"
"believe," "estimate," "expect," "intent," "may," "project," "plan", "should"
and similar expressions are intended to be among the statements that identify
forward-looking statements. Forward-looking statements are subject to a wide
range of risks and uncertainties, and although the Company believes that the
expectations represented by such forward-looking statements are reasonable,
there can be no assurance that such expectations will be realized. Any number
of important factors could cause actual results to differ materially from
those in the forward-looking statements including, but not limited to, the
volatility of oil and gas prices, the ability to implement corporate
strategies, the state of domestic capital markets, the ability to obtain
financing, changes in oil and gas acquisition and drilling programs, operating
risks, production rates, reserve estimates, changes in general economic
conditions and other factors more fully described from time to time in the
reports and filings made by Cirrus with securities regulatory authorities.

    The TSX Venture Exchange does not accept responsibility for the
    adequacy or accuracy of this release.

    %SEDAR: 00021839E

For further information:

For further information: David Taylor, President and Chief Executive
Officer; Pamela Orr, Vice President Finance and Chief Financial Officer,
Cirrus Energy Corporation, Suite 350, 926 - 5th Avenue S.W. Calgary, Alberta
T2P 0N7, Canada, Website:, Telephone: (403) 216-5030,
Facsimile: (403) 265-9530

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