CYGAM Energy Inc. is proceeding with (i) a non-brokered private placement of units of the Company (Units) at a price of $1,000 per Unit for a maximum of $7.5 million in gross proceeds (the "Unit Offering") and (ii) a non-brokered private placement of common shares of the Company ("Common Shares") at a price of $0.35 per share for a maximum of $7.5 million in gross proceeds (the "Share Offering" and together with the Unit Offering the "Private Placement"). There will be 135.1 million Common Shares outstanding if the Share Offering is fully subscribed for (excluding any Common Shares issuable pursuant to the Warrants).

Each Unit will consist of $1,000 principal amount of unsecured debentures of the Company (the "Debentures") and 1,000 common share purchase warrants of the Company (the "Warrants"). The Debentures will mature on December 31, 2017, bear interest at a rate of 10% payable quarterly in arrears commencing on March 31, 2013. The Debentures may be redeemed at the option of the Company at any time after December 31, 2015, in whole or in part from time to time, on not more than 60 days and not less than 30 days prior notice, at a price equal to their principal amount plus accrued and unpaid interest to, but excluding, the date fixed for redemption.

Tags: Cygam Energy Inc.