Magma Energy Corp. 3-times oversubscribed at today’s listing

Alexander Richter 7 Jul 2009

Magma Energy Corp. (TSX:MXY) has closed its previously announced initial public offering of common shares, raising CA$ 100 million (US$ 87 million) with possible to increase this to CA$ 115 million with an over-allotment option.

Reported today by Reuters and others, Magma Energy Corp. (TSX:MXY) has closed its previously announced initial public offering of common shares (the “Offering”).

As soon as further details on shareholders etc will be available they will be posted here.

Pursuant to the Offering, Magma today issued 66,667,000 common shares at a price of C$1.50 per common share, for aggregate gross proceeds of C$100,000,500. Magma has granted to the underwriters an over-allotment option, exercisable for a period of 30 days from the date of closing of the Offering, to purchase up to an additional 10,000,050 common shares also at a price of C$1.50 per common share to cover over-allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised in full, total gross proceeds of the Offering will be C$115,000,575.

A syndicate of underwriters, co-led by Raymond James Ltd. and Cormark Securities Inc. and including Canaccord Capital Corporation, National Bank Financial Inc., Dundee Securities Corporation, Jacob & Company Securities Inc. and Wellington West Capital Markets Inc., managed the Offering.

Ross J. Beaty, Chairman and Chief Executive Officer of Magma, said, “We are pleased by the extremely positive reception to our initial public offering. We are committed to building shareholder value through discovery, development, operation and acquisition of geothermal projects internationally. The success of our initial public offering will enhance our ability to become a leader in the global geothermal industry.”

For an up-to-date stock overview, see Magma Energy Corp under ticker MXY on the website of the Toronto Stock Exchange

Magma Energy stock was flat at C$1.50 at midmorning on the TSX, falling later to C$1.49 as of now.

Source: Reuters, TMX Marketwatch