By Devika Patel
Knoxville, Tenn., May 7 - Fairborne Energy Ltd. said it will conduct a C$24.7 million private placement of shares.
The company will sell 2 million common shares at C$12.35 each.
The deal will be conducted by a syndicate of underwriters led by Cormark Securities Inc. and RBC Capital Markets and including Canaccord Capital Corp., National Bank Financial Inc., FirstEnergy Capital Corp., CIBC World Markets Inc. and Dundee Securities Corp.
There is an over-allotment option for 300,000 shares, or C$3.7 million. Settlement is expected May 28.
Proceeds will be used to fund Fairborne's exploration and development program and for working capital purposes.
Fairborne is a Calgary, Alta.-based oil and natural gas exploration company.
| Issuer: | Fairborne Energy Ltd.
|
| Issue: | Common shares
|
| Amount: | C$24.7 million
|
| Greenshoe: | C$3.7 million
|
| Shares: | 2 million
|
| Price: | C$12.35
|
| Warrants: | No
|
| Underwriters: | Cormark Securities Inc. (co-lead), RBC Capital Markets (co-lead), Canaccord Capital Corp., National Bank Financial Inc., FirstEnergy Capital Corp., CIBC World Markets Inc., Dundee Securities Corp.
|
| Pricing date: | May 7
|
| Settlement date: | May 28
|
| Stock symbol: | Toronto: FEL
|
| Stock price: | C$10.59 at close May 6
|
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