Xcite Energy Limited ("Xcite Energy" or the "Company") Secures GBP 20 Million Equity Line
28 September 2010 - 4:00PM
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 entered into a Standby Equity
Distribution Agreement ("SEDA") with YA Global Master SPV Ltd
("Yorkville"), an investment fund managed by Yorkville Advisors
LLC, for a £20 million equity line of credit. The Company intends
to use funding from the SEDA judiciously and prudently to assist in
its future working capital requirements and to progress towards the
first stage production of the Bentley field without delay.
Under the terms of the SEDA, Xcite may draw down funds from time
to time, at its sole discretion, over a period of up to three years
in exchange for the issue of new shares in the capital of the
Company. All shares issued by Xcite will be at a price based on
existing market conditions at the time of each drawdown within the
private placement pricing parameters of the TSX Venture
Exchange.
Yorkville will receive an aggregate fee of £400,000 for the
provision of this SEDA facility, of which £200,000 is payable
within the first 6 months of the facility term and in tranches as
the facility is available and used (or 6 months from the execution
of the SEDA); a further £200,000 will be payable on the first
anniversary of the execution of the SEDA. In addition, Yorkville
will be granted 300,000 share purchase warrants in tranches
relating to the initial drawdowns under the SEDA. Each warrant will
be exercisable to acquire one share in the capital of the Company
for a period of 24 months from the date of grant at a price equal
to 200% of the closing price of the shares on the TSX Venture
Exchange on the day prior to the date of the grant.
Richard Smith, Xcite Energy Chief Executive
Officer commented:
"This SEDA facility is a very useful part of our funding options
and we are very pleased to have the independent financial capacity
that Yorkville can provide at this vital time in our corporate
development."
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.
Forward-Looking Statements
Certain statements contained in this announcement constitute
forward-looking information within the meaning of securities laws.
Forward-looking information may relate to the Company's future
outlook and anticipated events or results and, in some cases, can
be identified by terminology such as "may", "will", "should",
"expect", "plan", "anticipate", "believe", "intend", "estimate",
"predict", "target", "potential", "continue" or other similar
expressions concerning matters that are not historical facts. These
statements are based on certain factors and assumptions including
expected growth, results of operations, performance and business
prospects and opportunities. While the Company considers these
assumptions to be reasonable based on information currently
available to us, they may prove to be incorrect. Forward-looking
information is also subject to certain factors, including risks and
uncertainties that could cause actual results to differ materially
from what we currently expect. These factors include risks
associated with the oil and gas industry (including operational
risks in exploration and development and uncertainties of estimates
oil and gas potential properties), the risk of commodity price and
foreign exchange rate fluctuations and the ability of Xcite Energy
to secure financing. Additional information identifying risks and
uncertainties are contained in the Company's annual information
form dated December 8, 2009 and in the annual Management's
Discussion and Analysis for Xcite Energy dated March 24, 2010 filed
with the Canadian securities regulatory authorities and available
at www.sedar.com. The Company disclaims any intention or obligation
to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as
required under applicable securities regulations.
ENQUIRIES: Xcite Energy Limited +44 (0) 1330 826740 Richard
Smith Chief Executive Officer Rupert Cole Chief Financial Officer
Arbuthnot Securities Limited (Nomad and Broker) +44 (0)20 7012 2000
Antonio Bossi Director Pelham Bell Pottinger +44 (0) 20 7861 3232
Mark Antelme Henry Lerwill Director Paradox Public Relations +1 514
341 0408 Jean-Francois Meilleur Consultant
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