By Sheri Kasprzak
New York, Sept. 28 - Midnight Oil Exploration Ltd. said it plans to raise C$40 million from a private placement.
The company plans to sell 10 million subscription receipts at C$4.00 each.
A syndicate of underwriters co-led by GMP Securities Ltd. and Sprott Securities Inc., and including Canaccord Capital Corp., CIBC World Markets Inc., FirstEnergy Capital Corp. and MGI Securities Inc. will have an over-allotment option for up to 2 million additional subscription receipts.
The subscription receipts are exchangeable into common shares on a one-for-one basis once Midnight Oil completes its acquisition of oil and natural gas reserves on the Red Earth property in Alberta.
The acquisition, which is expected to cost C$46 million, is scheduled to close Nov. 30.
The private placement is expected to close on Oct. 6, and proceeds will be held in escrow until the acquisition is completed.
Holders will have their investments refunded if the acquisition does not close by Dec. 30.
Based in Calgary, Alta., Midnight Oil is an oil and natural gas exploration company.
| Issuer: | Midnight Oil Exploration Ltd.
|
| Issue: | Subscription receipts exchangeable for common shares
|
| Amount: | C$40 million
|
| Receipts: | 10 million
|
| Greenshoe: | For up to 2 million receipts
|
| Price: | C$4.00
|
| Warrants: | No
|
| Underwriters: | GMP Securities Ltd. (lead); Sprott Securities Inc. (lead); Canaccord Capital Corp.; CIBC World Markets Inc.; FirstEnergy Capital Corp.; MGI Securities Inc.
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 6
|
| Stock price: | C$4.30 at close Sept. 27
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
