Sabretooth Energy Ltd. announces closing of $46 million subscription receipt offering


    CALGARY, June 18 /CNW/ - Sabretooth Energy Ltd. ("Sabretooth" or the
"Company") (TSX: SAB) announced today that it has completed the previously
announced offering of 53,590,000 subscription receipts ("Subscription
Receipts") of the Company at a price of $0.86 per Subscription Receipt for
gross proceeds of $46,087,400. The financing was completed by a syndicate of
underwriters which was led by Cormark Securities Inc. and included Macquarie
Capital Markets Canada Ltd., FirstEnergy Capital Corp., National Bank
Financial Inc., Tristone Capital Inc. and GMP Securities L.P. (collectively,
the "Underwriters"). The gross proceeds of the offering include an additional
$6,011,400 as a result of the exercise, in full, of the option granted to the
Underwriters in connection with the offering.
    The gross proceeds of the offering are being held in escrow and will be
released to the Company, if, at or before 5:00 p.m. (Calgary time) on August
31, 2009, certain conditions are satisfied, including the satisfaction or
waiver of all conditions precedent to the reorganization agreement with
Cequence Energy Ltd. and the completion of the transactions contemplated
therein, Sabretooth's previously announced rights offering being priced at or
greater than $0.35 per share and not greater than $0.37 per share and the
receipt of shareholder and regulatory approvals. Upon release of the escrowed
funds to the Company, each Subscription Receipt will be converted into one
common share of Sabretooth (a "Common Share") without additional payment or
future action.
    The Company has agreed to use its best efforts to qualify the
distribution of the Common Shares issuable pursuant to the Subscription
Receipts by a final short form prospectus. If the Company does not receive a
receipt for such final short form prospectus dated on or before the date of
the completion of the reorganization transaction with Cequence Energy Ltd.,
the Common Shares issuable pursuant to the Subscription Receipts will remain
subject to a hold period that will expire on October 19, 2009 and holders of
the Subscription Receipts will be entitled to receive an additional 0.1 of a
Common Share per Subscription Receipt held (such that holders will receive an
aggregate of 1.1 Common Shares per Subscription Receipt) without additional
consideration or further action on the part of the holders thereof.
    Holders of Subscription Receipts will not be shareholders of Sabretooth
as of the record date to be established in connection with the Company's
previously announced rights offering and as a result, will not be entitled to
participate in such rights offering.

    ADVISORY: This press release contains forward looking statements which
include statements concerning the offering and certain other contemplated
transactions involving Sabretooth. Although Sabretooth believes that the
expectations reflected in these forward looking statements are reasonable,
undue reliance should not be placed on them because Sabretooth 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 issuance of Common Shares pursuant to
the Subscription Receipts and the release of the escrowed proceeds of the
offering to Sabretooth could be delayed or may not occur at all if Sabretooth
is not able to obtain the necessary shareholder, stock exchange and other
regulatory approvals on the timelines it has planned.
    The forward looking statements contained in this press release are made
as of the date hereof and Sabretooth 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.
    This news release is not for dissemination in the United States or to any
United States news services. The Subscription Receipts and the Common Shares
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold in the United States or to any U.S. person
except in certain transactions exempt from the registration requirements of
the U.S. Securities Act and applicable state securities laws.
    The Toronto Stock Exchange has neither approved nor disapproved the
contents of this press release.

For further information:

For further information: Joe McFarlane, Chief Financial Officer, (403)

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890