Item 7.01. Regulation FD Disclosure.
November 25, 2008 - Guernsey, Channel Islands - CanArgo Energy Corporation
(OSE:CNR; AMEX:CNR) ("CanArgo" or the "Company") announced today the results of
its rights offering (the "Rights Offering") of 242,107,390 new shares (the "New
Shares") of common stock in CanArgo Energy Corporation with a total of
12,348,303 New Shares subscribed in the Rights Offering for gross proceeds of
approximately $1.2 million.
Subscription rights (the "Rights") were issued to shareholders of record as of
end October 2, 2008. Of the 242,107,390 Rights issued in the Rights Offering,
95,913,959 Rights were distributed in the United States and listed on The
American Stock Exchange (the "U.S. Subscription Rights") and146,193,431 Rights
were distributed through the VPS system in Norway and listed on the Oslo Børs
(the "VSP Subscription Rights"). The subscription period for the VPS
Subscription Rights ended November 11, 2008 and the subscription period for the
U.S. Subscription Rights ended November 21, 2008.
Of the New Shares subscribed in the Rights Offering, 4,691,022 were subscribed
by exercise of VPS Subscription Rights in Norway and 7,657,281 were subscribed
in the U.S.
Prior to the launch of the Rights Offering, the Company entered into several and
not joint underwriting agreements with a group of eight foreign private
investors (the "Standby Underwriters") regarding underwriting of New Shares not
subscribed by the Rights holders, up to a maximum aggregate amount of
242,000,000 New Shares. The Standby Underwriters have today been notified in
writing of the results of the Rights Offering and their obligation to subscribe,
in the pro rata amount of their respective underwriting commitments, for the
additional 229,759,087 unsubscribed for New Shares within seven business days of
such notification.
CanArgo is an independent oil and gas exploration and production company with
its oil and gas operations currently located in Georgia.
The information in this item 7.01 (including its exhibit) shall not be deemed to
be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended ("Exchange Act"), or otherwise subject to liability of that section. The
information in this report (including its exhibit) shall not be incorporated by
reference into any registration statement or other document filed under the
Securities Act of 1933, as
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amended, or the Exchange Act, regardless of any general incorporation language
in such filing, except as shall be expressly set forth by specific reference in
such filing.
A copy of the Press Release is attached hereto as Exhibit 99.1,
Section 9-Financial Statements and Exhibits
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