Offering is conditional upon company acquiring lands from Deventa Land
By Devika Patel
Knoxville, Tenn., Sept. 27 - Donnycreek Energy Inc. said it plans a C$25 million private placement of stock, which will be conducted on a best-efforts basis by a syndicate of agents led by RBC Capital Markets and including Paradigm Capital Inc. and Cormark Securities Inc.
The company will sell common shares at C$1.60 apiece, an 8.57% discount to the Sept. 26 closing share price of C$1.75.
Settlement is expected Oct. 15.
The deal is conditional on the company acquiring lands in the Deep Basin area of West Central Alberta from Deventa Land Corp.
Proceeds will be used for drilling the company's Kakwa block, advancing the acquired assets towards commercial development and for general corporate purposes.
The oil and natural gas production company is based in Calgary, Alta.
| Issuer: | Donnycreek Energy Inc.
|
| Issue: | Common shares
|
| Amount: | C$25 million
|
| Price: | C$1.60
|
| Warrants: | No
|
| Agents: | RBC Capital Markets (lead), Paradigm Capital Inc. and Cormark Securities Inc.
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 15
|
| Stock symbol: | TSX Venture: DCK
|
| Stock price: | C$1.75 at close Sept. 26
|
| Market capitalization: | C$36.06 million
|
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