OTCPK:VGIPF - Post by User
Post by
retiredcfon Mar 30, 2012 9:54am
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Post# 19737957
Financing
Financing In light of this news, why would anyone sell? Nice to be able to pick up the stock this morning at close to 10% lower than the financing. GLTA.
Renegade Petroleum Ltd. Announces Closing of $50 Million Bought Deal Financing
Friday, March 30, 2012
CALGARY, ALBERTA--(Marketwire - March 30, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.
Renegade Petroleum Ltd. ("Renegade" or the "Company") (TSX VENTURE:RPL) is pleased to announce that it has completed its previously announced bought deal financing. Renegade, through a syndicate of underwriters led by GMP Securities L.P., and including Canaccord Genuity Corp., Dundee Securities Ltd., Macquarie Capital Markets Canada Ltd., Paradigm Capital Inc., TD Securities Inc., AltaCorp Capital Inc., FirstEnergy Capital Corp. and Raymond James Ltd. (collectively, the "Underwriters") issued a total of 10,000,000 common shares at a price of $4.00 per common share and 2,084,000 common shares issued on a "flow-through basis" under the Income Tax Act (Canada) at a price of $4.80 per flow-through share to raise gross proceeds of approximately $50 million (the "Financing"). The net proceeds from the Financing will initially be used to repay outstanding indebtedness under the Company's credit facility, thereby freeing up borrowing capacity to accelerate development of the Slave Point play, continue Renegade's active land acquisition strategy in southeast Saskatchewan, accelerate the development of Renegade's facilities in southeast Saskatchewan and for general corporate purposes.
In connection with the Financing, the Underwriters have the option to purchase up to an additional 1,125,000 common shares until 30 days following the closing date.