TORONTO, ONTARIO--(Marketwire - May 27, 2010) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX) is pleased to announce that Geofinance N.V. ("Geofinance") has exercised warrants to acquire 75,666,666 common shares of Candax at an exercise price of $0.08462 per common share, being the volume weighted average trading price calculated based on the last five days of trading. The total proceeds to Candax from this warrant exercise were $6,402,913. The acquisition of the common shares issued upon the exercise of the warrants increased the number of common shares of Candax held by Geofinance's ownership to 220,111,110 common shares, representing 56.5% of those outstanding. The common shares issued upon exercise of the warrants are subject to a hold period which expires on August 1, 2010.
Matthieu Milandri, Chief Financial Officer commented,
"We are pleased that Geofinance has decided to continue to invest in Candax. We believe it shows the confidence Geofinance has in Candax's future and assets. These equity proceeds increase Candax's financial flexibility at a time when the Company is designing significant work programs on its main assets."
About Candax Energy Inc.
Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia and holds an interest in an exploration permit in Madagascar.
This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of Management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax Energy Inc. to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax Energy Inc. to fund the capital and operating expenses necessary to achieve the business objectives of Candax Energy Inc., the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax Energy Inc. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax Energy Inc. should not place undue reliance on these forward-looking statements. Statements in relation to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.
FOR FURTHER INFORMATION PLEASE CONTACT:
Candax
Charlotte May
Corporate Secretary
416 364 3353
cmay@candax.com
CHF Investor Relations
Jeanny So
Account Manager
416 868 1079 ext. 225
jeanny@chfir.com
Source: Candax Energy Inc.
|