CALGARY, ALBERTA--(Marketwire - Jan. 18, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN UNITED STATES
Iona Energy Inc. ("Iona" or the "Company") (TSX VENTURE:INA), is pleased to announce that it has engaged Casimir Capital Ltd. ("Casimir") to act as lead underwriter on a financing for the Company to raise $20,000,200 through the completion of a private placement on a "bought deal" basis (the "Offering"). The Offering will be in the form of common shares of the Company (the "Shares") at a price of $0.55 per Share. The Company will also grant the underwriters an option exercisable at any time prior to closing to increase the size of the Offering by an additional 15%, which would result in additional gross proceeds to the Company of $3,000,030.
The Offering is subject to the approval of the TSX Venture Exchange. Pursuant to applicable securities laws, all securities issued pursuant to the Offering will be subject to a hold period of four months following the closing of the Offering. The Offering is expected to close on or about January 31, 2013 in conjunction with the anticipated closings of Iona's previously announced Huntington acquisition, senior secured reserve-based lending facility (the "RBL"), and second lien secured loan notes ("Second Notes").
Iona had anticipated funding the Huntington acquisition and its existing property developments through the RBL, Second Notes, and working capital; however, in the course of finalizing lender credit approvals the lenders requested a hold back of several months of projected production revenues to build and maintain a lenders' reserve account to mitigate against perceived potential production fluctuations associated with start-up of production from the Huntington field. This required Iona to raise additional capital to offset the lender's holdback in order to maintain continued liquidity to achieve its development goals.
About Iona Energy
Iona is an oil and gas exploration, development and production company focused on oil and gas development and exploration in the United Kingdom's North Sea.
The securities of Iona being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
Some of the statements in this announcement are forward-looking, including statements regarding the proposed terms of the Offering and anticipated closing dates of various transactions of Iona. Forward-looking statements include statements regarding the intent, belief and current expectations of Iona Energy Inc. or its officers with respect to various matters, including the Offering. When used in this announcement, the words "expects," "believes," "anticipate," "plans," "may," "will," "should", "scheduled", "targeted", "estimated" and similar expressions, and the negatives thereof, are intended to identify forward-looking statements. Such statements are not promises or guarantees, are based on various assumptions by Iona's management and are subject to risks and uncertainties that could cause actual outcome to differ materially from those suggested by any such statements, including without limitation, the risk that the transactions described herein do not close concurrently, are delayed for any reason, or are not completed. These forward-looking statements speak only as of the date of this announcement. Iona Energy Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based except as required by applicable securities laws.