Washington, D.C./Tunis, Tunisia, January
23, 2012—IFC, a member of the World Bank Group, today agreed to invest
9.79 million Canadian dollars in oil producer Candax Energy, helping the
company ramp up operations in Tunisia and in turn creating jobs and boosting
government revenues in the North African country.
IFC’s investment will be used by Candax to increase production at its
oil fields in Tunisia’s south eastern Medenine governorate, where the
company currently employs over 150 people. In addition to financing, IFC
is helping Candax implement best practice environmental and social management,
including close collaboration with local communities.
“Candax is pleased to welcome IFC as
a shareholder and long-term partner,” said Benoit Debray, Chairman and
Chief Executive Officer of Candax. “The investment by IFC, a sophisticated
investor with a successful track record supporting the oil and gas sector
in emerging markets, will allow us to continue expanding our program in
In addition to investments in the oil and gas sector, IFC’s current strategy
in Tunisia focuses on supporting public-private partnerships in infrastructure
projects, improving the education system, opening up credit lines to small
businesses and investing in job-creating industries such as information
technology, manufacturing, agribusiness and mining.
“Our investment in Candax builds on
IFC’s strategy to support Tunisia’s priorities of economic recovery and
employment generation”, said Lance Crist, IFC Global Head of Oil and Gas.
”Responsible companies with strong management teams like Candax are showing
that the private sector can play a positive role in the future of Tunisia
and the region.”
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org.
Legal Disclosure about IFC's Investment
Certain members of Candax’s senior
management and non-executive directors have also agreed to invest up to
an aggregate amount of 11,790,000 Canadian dollars in Candax on substantially
the same terms as IFC Private Placement (the Management Private Placement).
The investment of approximately 9,790,000
Canadian dollars in Candax will result in IFC acquiring 178,000,000 units
issued by Candax. Candax is expected to issue up to 36,363,636 units in
connection with the Management Private Placement. Each unit is composed
of one common share and one warrant. Each of the warrants entitles the
holder to purchase one common share of Candax at an exercise price of $0.08
Canadian dollars per common share for a period of three years from the
date of issuance, subject to Candax’s right to accelerate the expiration
of the warrants in accordance with their terms.
The issue price per unit is 0.055 Canadian
dollars. It is expected that upon completion of the IFC Private Placement
and the Management Private Placement (together, the Private Placements),
there will be 1,067,929,513 Candax common shares outstanding. The Private
Placements are subject to a number of conditions including the requisite
approval by holders of Candax common shares at a special meeting of Candax
shareholders expected to be held on February 17, 2012. Immediately upon
the closing of the Private Placements, it is expected that IFC will directly
hold approximately 16.7 percent of the outstanding share capital of Candax
and approximately 28.6 percent of Candax’s outstanding share capital
assuming the exercise of all of IFC’s warrants acquired under this private
The Private Placements are expected
to close in February, 2012. IFC is acquiring the units for investment purposes
as described above. IFC may, in the future, take such actions in respect
of its holdings as IFC deems appropriate in light of the circumstances
then existing. Under the subscription agreement entered into between IFC
and Candax, IFC will be granted certain pre-emptive rights. To obtain a
copy of the report filed by IFC with the Canadian securities regulatory
authorities in respect of which this news release relates, please contact
Josef Skoldeberg at the phone number or e-mail address referred to above.
IFC’s headquarters are located at 2121 Pennsylvania Avenue, N.W., Washington,
D.C., 20433, U.S.A.
About Candax Energy
Candax is an international energy company
with its head office in Toronto and offices in Tunis and Madagascar. The
Candax group is engaged in exploration and the production of oil and gas
in Tunisia and holds an interest in an exploration permit in Madagascar.