Financing announcedAngle Energy arranges $20-million bought-deal financing
2009-05-07 14:34 MT - News Release
Ms. Heather Christie-Burns reports
ANGLE ANNOUNCES $20,000,000 EQUITY FINANCING
AngleEnergy Inc. has entered into an agreement with a syndicate ofunderwriters led by GMP Securities LP, which has agreed to purchase, ona bought-deal basis, 4,444,500 special warrants of Angle Energy at aprice of $4.50 per special warrant, for total gross proceeds ofapproximately $20-million.
In addition, the underwriters havebeen granted an overallotment option, which may be exercised up to 48hours prior to closing of the offering, to purchase up to 2,222,224additional special warrants at a price of $4.50 per special warrant. Ifthe overallotment is fully exercised, gross proceeds from the offeringwill be approximately $30-million.
Each special warrant willentitle the holder thereof to receive one common share of the companyon the exercise or deemed exercise of the special warrant. The specialwarrants will be exercisable by the holder at any time after theclosing for no additional consideration, and all unexercised specialwarrants will be deemed to be exercised on the earlier of:
- Four months and a day following the closing;
- That day on which a receipt is issued by the securities regulatory authorities in the provinces of Alberta, British Columbia, Saskatchewan, Manitoba and Ontario for a final prospectus qualifying the common shares to be issued upon the exercise of the special warrants.
The company shall use its reasonable bestefforts to obtain such receipt for a final exercise of the specialwarrants within 30 days of closing. Until the receipt is issued forsuch prospectus, the special warrants, as well as the common sharesissuable upon exercise thereof, will be subject to a four-month holdperiod under applicable Canadian securities laws.
Angle Energy plans to use the net proceeds from the offering to finance capital expenditures and for general corporate purposes.
Theoffering is scheduled to close on or about May 22, 2009, and is subjectto certain conditions including, but not limited to, the receipt of allnecessary approvals, including the approval of the Toronto StockExchange and the securities regulatory authorities.
We seek Safe Harbor.
Very impressive financing. Management continues to impress me.