Leucrotta increases bought deal to $80-million

Alpha Stox April 6, 2017 Comments Off
Leucrotta increases bought deal to $80-million

Mr. Robert Zakresky reports

LEUCROTTA EXPLORATION INC. INCREASES SIZE OF BOUGHT DEAL FINANCING TO $80 MILLION

Leucrotta Exploration Inc., in connection with its bought deal financing announced on April 5, 2017, has entered into a revised agreement with the syndicate of underwriters co-led by Haywood Securities Inc. and National Bank Financial Inc., pursuant to which the underwriters have agreed to increase the size of the bought deal financing. Leucrotta will now issue: (i) 33,333,400 common shares of the Company (“Common Shares”) at a price of $2.25 per Common Share for gross proceeds from the offering of Common Shares of approximately $75 million (the “Common Share Financing”); and (ii) 1,852,000 Common Shares to be issued on a flow-through basis in respect of Canadian Exploration Expenses (“CEE”) (the “Flow-Through Shares”) under the Income Tax Act (Canada) at a price of $2.70 per Flow-Through Share for gross proceeds from the offering of Flow-Through Shares of approximately $5 million (the “Flow-Through Share Financing”). The aggregate gross proceeds from the increased Common Share Financing and Flow-Through Share Financing will be approximately $80 million (the “Financing”).

The Company shall, pursuant to the provisions of the Income Tax Act (Canada), incur eligible CEE (the “Qualifying Expenditures”) after the closing of the Financing and prior to December 31, 2018 in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue and sale of the Flow-Through Shares. The Company shall renounce the Qualifying Expenditures so incurred to the purchasers of the Flow-Through Shares effective on or prior to December 31, 2017.

The Common Shares and Flow-Through Shares to be issued under the Financing will be distributed by way of a short form prospectus in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and New Brunswick. A portion of the Common Share Financing may be conducted on a private placement basis in the United States and certain other jurisdictions outside of Canada as the Company and the Underwriters may agree on a private placement basis. No prospectus will be required to be filed in any jurisdiction other than the Canadian jurisdictions.

Completion of the Financing is subject to certain conditions including the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities, as applicable. The Financing is expected to close on or about April 26, 2017 or such other date as agreed upon between Leucrotta and the Underwriters, but in any event no later than May 15, 2017.

ABOUT LEUCROTTA EXPLORATION INC.

Leucrotta Exploration Inc. is a Montney focused producer with lands located in the Dawson-Sunrise area in northeast British Columbia. Leucrotta’s current acreage in the area is approximately 100,500 gross (90,200 net) acres or approximately 157 gross (141 net) sections of Montney land. Current production is approximately 3,000 boe/d (25% oil & NGLs). Leucrotta’s shares are listed on the TSX Venture Exchange under the symbol “LXE”.

We seek Safe Harbor.

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