Long Run Exploration (TSX:LRE, Stock Forum), a Calgary-based firm engaged in the exploration, development and acquisition of Western Canadian petroleum and natural gas properties, announced today that the company had closed its $120 million bought deal subscription receipt offering.
According to the news release, the offering consisted on 23,530,000 subscription receipts at a price of $5.10 per subscription receipt and was offered to a syndicate co-led by National Bank Financial and Macquarie Capital Markets Canada.
The release went on to note, “Each Subscription Receipt represents the right to acquire, without payment of additional consideration or further action, one common share of Long Run (a "Common Share") upon closing of the previously announced acquisition of certain liquids-rich natural gas and oil properties focused on the Cardium in the Deep Basin area of Alberta pursuant to a purchase and sale agreement dated April 9, 2014 (the "Acquisition").”
Then it concluded, “The Acquisition is expected to be completed on or about May 30, 2014 and is subject to customary closing conditions.”
Gross proceeds from the transaction will be held in escrow pending the closure of the aforementioned acquisition closure and if the acquisition is terminated in accordance with its terms or is not completed on or before July 31, 2014 and/or Ling Run informs the underwriters it does not intend to carry on with the acquisition, holders of said subscription receipts will be refunded the full subscription price plus their pro rata portion of the interest earned while in escrow.
Long Run was in the news recently when the company announced a dividend in the middle of April.
Shares dipped 2.11% on the news to $5.56 per share.
Currently there are 110.4m outstanding shares with a market cap of $613.6 million.