IAE.V Why isnt it moving? I think the answer is below. Just way too many pissed off holders that averaged down and were looking for the exit once IAE turned around. Their "joy" (getting out even), our pain (frustrated value investors). Maybe another quarter of solid performance does it and IAE moves towards fair value.
ITHACA ENERGY ANNOUNCES CLOSING OF
CDN$75 MILLION EQUITY FINANCING
London, UK - Calgary, Canada, August 11, 2008 – Ithaca Energy Inc. ("Ithaca") (TSX Venture: IAE,
LSE AIM: IAE), an independent oil & gas company with exploration and development assets in the UK
sector of the North Sea, is pleased to confirm the closing of its previously announced marketed equity
financing. Ithaca has issued 50,000,000 common shares at a price of Cdn$1.50 per common share for
gross proceeds of Cdn$75,000,000. RBC Capital Markets Inc. and Tristone Capital Inc. acted as co-lead
agents for a syndicate that included FirstEnergy Capital Corp., Canaccord Capital Corporation, Fraser
Mackenzie Limited and Research Capital Corporation.
Ithaca intends to use the net proceeds of the Offering to fund ongoing Jacky and Athena project
development, the completion of the Beatrice and Stella acquisitions and for general working capital
purposes. Ithaca anticipates that this financing, combined with the recently announced US$240 million
bank financing, will be sufficient to fund Ithaca through to first production on both its Jacky and Athena
projects expected at the end of this year and at the end of 2009, respectively.
The 50,000,000 new shares will begin trading on the TSX Venture Exchange Inc. effective today. In
addition, application has been made to the London Stock Exchange for these new shares to be admitted to
trading on AIM with admission expected to take place on August 13, 2008. Following the issue of these
shares, the total number of shares in issue will be 162,261,975.
As part of the new equity issue, Directors of the Ithaca have subscribed for new common shares at a price
of Cdn$1.50 as follows:
Director Position Number of new common shares
subscribed for
John Summers Chairman 86,700
Lawrie Payne Chief Executive Officer 75,000
Frank Wormsbecker Director 30,000
Brad Hurtubise Director 30,000
In addition, Iain McKendrick, Ithaca’s Chief Operating Officer and Steven Turner, Ithaca’s Chief
Financial Officer have subscribed for 40,000 common shares and 20,000 common shares respectively,
each at a price of Cdn$1.50 per common share.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in
any jurisdiction. The common shares may be offered or sold in other eligible foreign jurisdictions and to
U.S. buyers on a private placement basis pursuant to an applicable exemption from registration
requirements in Rule 144-A or Regulation D of the United States Securities Act of 1933, as amended.
