Mr. Garth Braun reports
BLACKBIRD ENERGY INC. CLOSES UPSIZED AND OVER SUBSCRIBED MARKETED PUBLIC OFFERING OF $84.8 MILLION
Blackbird Energy Inc. has closed its previously announced marketed public offering through a syndicate of agents co-led by Cormark Securities Inc., Pareto Securities AS and TD Securities Inc., and also including BMO Capital Markets, Scotia Capital Inc., Haywood Securities Inc., Laurentian Bank Securities Inc., Raymond James Ltd. and Jett Capital Advisors LLC.
Blackbird issued 112,456,000 common shares of the company at a price of 55 cents per common share, 29,643,750 common shares issued on a CEE flow-through basis at a price of 64 cents per CEE flow-through share and 6.8 milliom common shares issued on a CDE flow-through basis at a price of 59 cents per CDE flow-through share, for aggregate gross proceeds of $84,834,800, which includes 2,456,000 common shares and 3,862,500 CEE flow-through shares issued pursuant to the partial exercise of the overallotment option by the agents.
The agents received a cash fee equal to 4.5 per cent of the gross proceeds of the offering.
The offering was completed by way of short form prospectus filed with the securities regulatory authorities in each of the provinces of Canada (except Quebec). The prospectus is accessible on SEDAR.
The net proceeds of the offering will be used by the company to finance the drilling and completion operations of approximately 12 Elmworth/Pipestone Montney wells and to incur related tie-in, equipping and pipeline gathering system costs, as well as for general corporate purposes, with the net proceeds from the sale of the CEE flow-through shares used to incur Canadian exploration expenses for the purposes of the Income Tax Act (Canada) after the closing date of the offering and prior to Dec. 31, 2018, and the net proceeds from the sale of the CDE flow-through shares used to incur Canadian development expenses for the purposes of the Income Tax Act (Canada) after the date of closing and prior to Dec. 31, 2017. The company will renounce the Canadian exploration expenses and the Canadian development expenses to subscribers of CEE flow-through shares and CDE flow-through shares, respectively, for the year ended Dec. 31, 2017.
Please see use of proceeds in the prospectus for further details on the use of net proceeds from the offering.
About Blackbird Energy Inc.
Blackbird Energy Inc. is a highly innovative oil and gas exploration and development company focused on the condensate and liquids-rich Montney fairway at Elmworth, near Grande Prairie, Alta.
We seek Safe Harbor.