CALGARY, August 28 /PRNewswire/ --
- NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA OR JAPAN
Addax Petroleum Corporation (TSX: AXC) ("Addax Petroleum") announces today its underwriting syndicate has elected to exercise the over-allotment option to purchase 1,750,000 subscription receipts at the price of CDN $27.25 per subscription receipt resulting in additional gross proceeds of CDN $47,687,500. Each subscription receipt represents the right to receive one common share in the share capital of Addax Petroleum, without payment of any additional consideration. Closing of the over-allotment option is scheduled to occur on August 30, 2006.
The over-allotment option was granted in connection with the recent offering of 13,000,000 subscription receipts. After the exercise of the over-allotment option, Addax Petroleum will have issued 14,750,000 subscription receipts pursuant to the offering for gross proceeds of CDN $401,937,500. The aggregate subscription proceeds, together with interest thereon, will be held in escrow by Computershare Trust Company of Canada and invested in short-term obligations of, or guaranteed by, the Government of Canada (and other approved instruments) pending completing of the acquisition of certain subsidiaries and other assets of Pan-Ocean Energy Corporation Limited (the "Acquisition"), which was announced on July 20, 2006 and is expected to close on or about September 7, 2006. In connection with the completion of the Acquisition, the escrowed funds will be released to Addax Petroleum and the outstanding subscription receipts will be converted into Addax Petroleum common shares.
The common shares of Addax Petroleum trade on the Toronto Stock Exchange under the symbol "AXC". The subscription receipts of Addax Petroleum trade on the Toronto Stock Exchange under the symbol "AXC.R"
The offering was underwritten by a syndicate led by RBC Capital Markets, Merrill Lynch Canada Inc. and Scotia Capital Inc., and included CIBC World Markets Inc., TD Securities Inc., National Bank Financial Inc., UBS Securities Canada Inc., BNP Paribas (Canada) Securities Inc., FirstEnergy Capital Corp., Canaccord Capital Corporation and Peters & Co. Limited.
About Addax Petroleum
Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on Africa and the Middle East. Addax Petroleum is the largest independent oil producer in Nigeria and has increased its crude oil production from an average of 8,800 barrels per day for 1998 to an average of approximately 80,000 barrels per day for the first half of 2006. Further information about Addax Petroleum is available at www.addaxpetroleum.com or at www.sedar.com.
This announcement is not an offer to sell or a solicitation of any offer to buy the securities of Addax Petroleum (the "Securities") in the United States.
The Securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States unless registered under the Securities Act or an exemption from such registration is available. No public offering of Securities of the Company is being made in the United States.
Reader Advisory: Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and that could cause actual results or events in differ materially from those expressed or implied by the forward-looking statements.
CALGARY, August 28 /PRNewswire/ --
