Bought deal financeCequence Energy Ltd. ("Cequence" or the "Company") (TSX: "CQE") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Peters & Co. Limited, pursuant to which Cequence has agreed to issue an aggregate of 10,400,000 common shares ("Common Shares") at a price of $3.85 per Common Share and 2,110,000 flow-through common shares to be issued on a "CEE flow-through" basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $4.75 per Flow-Through Share, for total gross proceeds of approximately $50.1 million. In addition, Cequence has granted the underwriters a 15% over-allotment option to purchase additional Common Shares for additional gross proceeds of approximately $6 million if the over-allotment option is exercised in full.
The Common Shares and Flow-Through Shares will be offered in all provinces of Canada (other than Quebec) by way of short form prospectus, and the Common Shares may be offered in the U.S. on a private placement basis pursuant to exemptions from registration requirements. The closing of the Offering is expected to occur on August 18, 2011, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX.