Bonterra Energy Corp (TSE:BNE) disclosed a private placement offering to be used to reduce debt levels and fund the 2015 drilling program after market closed on Monday. Company disclosed that it will complete a private placement offering of 1.2 mm shares at a price of $32 per share, translating in total earnings of $38.4 mm. The offering is open to all recent shareholders, and will expire by month end.
Bonterra Energy Corp. (Bonterra) (www.bonterraenergy.com) (BNE.TO) announces that it has entered into an agreement with a syndicate of Underwriters pursuant to which the Underwriters have agreed to purchase on a bought deal basis 481,500 common shares at a price of $49.85 per Common Share (the “Issue Price”) for aggregate gross proceeds of approximately $24 million (the “Offering”).
The net proceeds of the Offering will be used to increase Bonterra’s capital expenditure program to further develop and exploit its Cardium properties, and for general corporate purposes.
The Offering is being made by a syndicate of underwriters led by FirstEnergy Capital Corp. (the “Underwriters”). Bonterra has granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to an additional 72,225 Common Shares at the Issue Price to cover over-allotments, if any, for additional gross proceeds of approximately $3.6 million. The Over-Allotment Option is exercisable in whole or in part at any time until 30 days after the closing of the Offering. Prior to this Offering, Bonterra had approximately 30,620,946 common shares outstanding.
Pursuant to the Offering, the Common Shares will be offered in the provinces of Alberta, British Columbia, Manitoba, Ontario and Saskatchewan, by way of a short form prospectus and by way of private placement in the United States pursuant to exemptions from the registration requirements pursuant to Rule 144A and/or Regulation D of the United States Securities Act of 1933.
Closing of the Offering is expected to occur on or about July 2, 2013. The Offering is subject to certain customary conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX.