Cano Petroleum Announces Completion of Common Stock Offering
July 01 2008 - 10:59AM
Business Wire
Cano Petroleum, Inc. (AMEX: CFW) announced today that it has
completed the sale of 7,000,000 shares of its common stock through
a firm commitment underwritten offering at a public offering price
of $8.00 per share resulting in net proceeds of approximately $54
million after underwriting discounts and commissions and estimated
expenses. Canaccord Adams, Inc. and Canaccord Capital Corporation,
the underwriters, will have an option to purchase up to an
additional 1,050,000 shares from the company to cover any
over-allotments. Cano Petroleum intends to use the net proceeds
from the offering for general corporate purposes and to initially
pay down its debt which will subsequently be drawn down in order to
finance (i) its existing development activities in certain core
areas such as the Panhandle and Cato properties and (ii) selective
bolt-on acquisitions of additional properties in its core areas.
The common stock was issued pursuant to the company�s universal
shelf registration statement. Copies of the final prospectus
supplement relating to the offering may be obtained from the
offices of Canaccord Adams, Inc., Attn: Syndicate Dept., 99 High
Street, 11th Floor, Boston, Massachusetts 02110. 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 these securities in any
country or state in which such offer, solicitation, or sales of
these securities would be unlawful prior to registration or
qualification under the securities laws of any such country or
state. Cano Petroleum Inc. is an independent Texas-based energy
producer with properties in the mid-continent region of the United
States. Led by an experienced management team, Cano�s primary focus
is on increasing domestic production from proven fields using
enhanced recovery methods. Cano trades on the American Stock
Exchange under the ticker symbol CFW. Additional information is
available at www.canopetro.com. Safe-Harbor Statement � Except for
the historical information contained herein, the matters set forth
in this news release are �forward-looking statements� within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
The company intends that all such statements be subject to the
�safe-harbor� provisions of those Acts. Many important risks,
factors and conditions may cause the company�s actual results to
differ materially from those discussed in any such forward-looking
statement. These risks include, but are not limited to, estimates
or forecasts of reserves, estimates or forecasts of production,
future commodity prices, exchange rates, interest rates, geological
and political risks, drilling risks, product demand, transportation
restrictions, whether the above-mentioned transaction closes, the
ability of Cano Petroleum, Inc. to obtain additional capital, and
other risks and uncertainties described in the company�s filings
with the Securities and Exchange Commission. The historical results
achieved by the company are not necessarily indicative of its
future prospects. The company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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