Blackbird Energy Inc. Completes Acquisition of Ruger Energy Inc.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2012) - Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company") is pleased to announce that is has closed its previously announced acquisition of Ruger Energy Inc. ("Ruger"), a junior oil and gas exploration and development company in Alberta (the "Acquisition").
As consideration for the Acquisition, Blackbird issued an aggregate of 47,143,250 transaction units (each, a "Transaction Unit") to the shareholders of Ruger. Each Transaction Unit consists of one common share (a "Transaction Share") and one-half of one share purchase warrant (a "Transaction Warrant"), for a total of 47,143,250 Transaction Shares and 23,571,625 Transaction Warrants. The Transaction Warrants are exercisable at a price of $0.24 until April 5, 2014. An aggregate of 124,074,266 Blackbird shares are issued and outstanding following completion of the Acquisition.
In conjunction with the closing, Blackbird has effected certain management changes, appointing Darrell Denney, Murray Scalf and Sean Campbell, all part of the Ruger team, to Blackbird's board of directors. The new directors replace Robert Booth, Dennis Paterson and Michael Sweatman. Mr. Denney has also assumed the position of Chief Operating Officer.
In addition, Blackbird has granted an aggregate of 4,000,000 incentive stock options to the new officers and directors and certain consultants. Half of the options will have an exercise price of $0.16 per share and the other half will be exercisable at a price of $0.20 per share for a period of five years.
Garth Braun, Chief Executive Officer and director of Blackbird, commented: "We are very pleased to complete this transaction which diversifies our project base and strengthens our balance sheet. The addition of the Ruger management team positions Blackbird for the development of new opportunities, access to further capital and greater value achievement for the existing assets. I would also like to take this opportunity to thank the outgoing members of our board of directors, Robert Booth, Dennis Paterson and Michael Sweatman, for their service to Blackbird."