TORONTO, March 12, 2013 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX" or the "Company") announces that it is making an application to the Ontario Securities Commission seeking an order to permanently cease trade the Company's shareholder rights plan (the "Order"). The provisions of the Company's shareholder rights plan were too restrictive to allow the closing of the previously announced private placement of a minimum of Cdn.$35,000,000 and a maximum of Cdn.$40,000,000 of units of CGX (the "Units") at a price of Cdn.$0.14per Unit (the "Private Placement"). Pacific Rubiales Energy Corp. ("Pacific Rubiales") has agreed to purchase all of the Units to be issued under the minimum offering that are not subscribed for by other investors. Obtaining the Order or redemption of the shareholder rights plan is now a condition of closing the Private Placement.
As there can be no assurance that the Company will obtain the Order, the Company will also schedule a special meeting of shareholders to be held on or about April 25, 2012 to seek shareholder approval of the redemption of the shareholder rights plan and approval of the Private Placement in the event that the Order is not obtained. As previously disclosed the Company also relied on the financial hardship exemption from the minority approval requirements of Policy 5.9 of the TSX Venture Exchange and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions in connection with the Private Placement.
The Private Placement that was originally scheduled to close on or before March 11, 2013, will now close at such time as an Order is granted, or shareholders grant approval at the special meeting of shareholders.
Professor Suresh Narine, Executive Chairman of CGX, stated, "The value of this transaction with Pacific Rubiales to the ongoing ability of CGX to explore its highly prospective licenses continues to be of significant importance to the future of the Company. CGX continues to be optimistic about its future activities in the Guyana Suriname basin."
