/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE U.S./
CALGARY, May 6, 2014 /CNW/ - Canacol Energy Ltd.
("Canacol" or the "Corporation" - TSX:CNE; OTCQX:CNNEF; BVC:CNEC)
is pleased to announce that it has entered into an agreement with a
syndicate of underwriters led by Canaccord Genuity Corp. on behalf
of a syndicate of underwriters (collectively the "Underwriters"),
which have agreed to purchase, on a bought deal basis, 15,823,000
common shares of Canacol (the "Common Shares") at a price of
$7.90 per Common Share for gross
proceeds of $125,001,700 (the
"Offering").
The Corporation will grant the Underwriters an option to
purchase up to 15% additional Common Shares (the "Over-Allotment
Option"), exercisable for a period of 30 days following the date of
closing to cover over-allotments, if any.
Canacol Energy will use the net proceeds from the Offering to
expand the Corporation's capital program and for general corporate
purposes.
The Common Shares will be offered by way of a short form
prospectus to be filed in of British
Columbia, Alberta and
Ontario and such other Canadian
provinces and territories (excluding Quebec) as the Underwriters and the
Corporation may agree, acting reasonably. The Offering will
also be sold in the United States
on a private placement basis to Qualified Institutional Buyers
pursuant to Rule 144A and in Europe and other eligible foreign
jurisdictions in accordance with applicable regulations such that
no prospectus, registration statement or similar document is
required to be filed in any jurisdiction outside of Canada.
Closing of the Offering is expected to occur on or about
May 27, 2014 and is subject to
certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the TSX
Exchange.
The securities offered have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United
States absent registration or an available exemption from
the registration requirements thereof. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Canacol Energy Ltd.
Canacol is an exploration and production company with operations
focused in Colombia and
Ecuador. The Corporation's common
stock trades on the Toronto Stock Exchange, the OTCQX in
the United States of America, and
the Colombia Stock Exchange under ticker symbol CNE, CNNEF, and
CNE.C, respectively.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of applicable securities law. Forward-looking
statements are frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may" or "will" occur, including without limitation
statements relating to estimated production rates from the
Corporation's properties and intended work programs and associated
timelines. Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made 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. The Corporation
cannot assure that actual results will be consistent with these
forward looking statements. They are made as of the date hereof and
are subject to change and the Corporation assumes no obligation to
revise or update them to reflect new circumstances, except as
required by law. Prospective investors should not place undue
reliance on forward looking statements. These factors include the
inherent risks involved in the exploration for and development of
crude oil and natural gas properties, the uncertainties involved in
interpreting drilling results and other geological and geophysical
data, fluctuating energy prices, the possibility of cost overruns
or unanticipated costs or delays and other uncertainties associated
with the oil and gas industry. Other risk factors could include
risks associated with negotiating with foreign governments as well
as country risk associated with conducting international
activities, and other factors, many of which are beyond the control
of the Corporation.
SOURCE Canacol Energy Ltd.