Petromagdalena Energy (fka ALNGF)

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Alange Energy Announces Closing of C$70,035,000 Equity Financing

TORONTO, Feb. 22 /CNW/ - Alange Energy Corp (TSXV: ALE) ("Alange Energy" or the "Company") is pleased to announce that it has closed its previously announced equity financing (the "Offering") of 233,450,000 units of the Company (the "Units") (which includes the exercise in full of the over-allotment option of 30,450,000 Units) at a price of C$0.30 per Unit for aggregated proceeds of C$70,035,000. The Units were sold pursuant to an underwriting agreement with a syndicate of underwriters led by GMP Securities L.P., and including Canaccord Genuity Corp., Jennings Capital Inc. and Raymond James Ltd. (collectively, the "Underwriters").
Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant of the Company. Each full warrant entitles the holder to purchase an additional common share in the capital of the Company at an exercise price of C$0.50 for a term of 5 years from the date hereof. In addition, the Company has issued Units equal to 6% of the Units sold pursuant to the Offering to the Underwriters in settlement of their underwriting commission.
The net proceeds raised under the Offering will be used to repay approximately US$33 million of bank debt, with the balance being used to, among other things, provide funding for exploration and development of the Company's core assets in 2011 as well as for general corporate and working capital purposes.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release is not an offer of securities for sale into the United States or Canada. No offering of securities shall be made in the United States or to or on behalf of a US person except pursuant to registration under the US Securities Act of 1933, as amended, or an exemption therefrom.