Drawdown on Equity Line and Directors' Share Purchases
June 29 2011 - 2:59PM
Marketwired
This announcement is not for release, publication
or distribution in or into the United States.
Xcite Energy (TSX-V: XEL) (LSE: XEL) (AIM: XEL) announces that
it has drawn down on its Standby Equity Distribution Agreement
("SEDA") with YA Global Master SPV Ltd ("Yorkville") in the amount
of £12.5 million (CAD$19.5 million). This draw down has been
undertaken at a price of £1.18 (CAD$1.84) per share and will result
in the issue of 10,593,220 ordinary shares of no par value in the
capital of the Company (the "SEDA Ordinary Shares") to Yorkville.
This funding will be used as future working capital for the Company
and to progress towards the first stage production of the Bentley
field.
Subject to the terms of the SEDA and except in accordance with
Canadian securities laws and with prior written approval of the TSX
Venture Exchange, the SEDA Ordinary Shares may not be sold or
otherwise traded on or through the facilities of the TSX Venture
Exchange or otherwise in Canada or to or for the benefit of a
Canadian resident until the date that is four months and one day
from the date of issue.
Application will be made for the admission to AIM ("Admission")
of the SEDA Ordinary Shares upon approval of the share issue by the
TSX Venture Exchange. The SEDA Ordinary Shares will rank pari passu
with the Company's existing issued ordinary shares (each, an
"Ordinary Share").
The Company has engaged Arbuthnot Securities Limited
("Arbuthnot") to assist in the placing of the stock acquired by
Yorkville pursuant to the SEDA, for which it will be paid a fee of
£82,800 (CAD$129,000). Arbuthnot, as agent for the purchasers, has
agreed to acquire 5,508,475 shares acquired by Yorkville pursuant
to the SEDA, including stock to be acquired by directors of the
Company.
The Company has received communication that two of its
directors, Rupert E. Cole and Stephen A. Kew intend to purchase,
using entities controlled directly by them, through Arbuthnot,
respectively, 1,000,000 and 1,000,000 Ordinary Shares of the
Company at a purchase price of £1.18 (CAD$1.84) per share from
Yorkville on the date of closing of the issuance of the SEDA
Ordinary Shares to Yorkville.
Following the purchase of the 1,000,000 Ordinary Shares, Mr.
Cole will hold an aggregate of 6,198,334 Ordinary Shares. Following
the purchase of the 1,000,000 Ordinary Shares, Mr. Kew will hold an
aggregate of 6,212,619 Ordinary Shares.
Subject to approval by the TSX Venture Exchange, following the
issue of the 10,593,220 Ordinary Shares the total Ordinary Shares
in the Company in issue will be 175,591,947.
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.
Oriel Securities which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively
for Xcite Energy and for no one else in connection with the subject
matter of this announcement and will not be responsible to anyone
other than Xcite Energy for providing the protections afforded to
its clients or for providing advice in connection with the subject
matter of this announcement.
Morgan Stanley which is authorised and regulated in the United
Kingdom by the Financial Services Authority, is acting exclusively
for Xcite Energy and for no one else in connection with the subject
matter of this announcement and will not be responsible to anyone
other than Xcite Energy for providing the protections afforded to
its clients or for providing advice in connection with the subject
matter of this announcement.
ENQUIRIES: Xcite Energy Limited +44 (0) 1483 549 063
Richard Smith Chief Executive Officer Rupert Cole Chief Financial
Officer Oriel Securities (Joint Broker and Nomad) +44 (0)
207 710 7600 Emma Griffin Simon Edwards Morgan Stanley
(Joint Broker) +44 (0) 207 425 8000 Andrew Foster Pelham Bell
Pottinger +44 (0) 207 861 3232 Mark Antelme Henry Lerwill
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