Agents help finance acquisition of oil and gas properties in Alberta
By Devika Patel
Knoxville, Tenn., Feb. 3 - Midway Energy Ltd. said it will conduct a C$21 million private placement of units.
The company will sell 6 million units of one common share and one half-share warrant at C$3.50 per unit on a bought-deal basis.
Each whole one-year warrant will be exercisable at C$4.00. The strike price reflects a 9.29% premium to the Feb. 2 closing share price of C$3.66.
The offering is being conducted via a syndicate of underwriters led by GMP Securities LP and including BMO Capital Markets, Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd. and Stifel Nicolaus Canada Inc.
Settlement is expected Feb. 15.
Proceeds will be used for the company's planned acquisition of oil and gas properties in the Garrington area of Alberta, to reduce debt and for general corporate purposes.
Midway Energy is an oil and natural gas exploration, production and development company based in Calgary, Alta.
| Issuer: | Midway Energy Ltd.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$21 million
|
| Units: | 6 million
|
| Price: | C$3.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$4.00
|
| Underwriters: | GMP Securities LP (lead), BMO Capital Markets, Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd. and Stifel Nicolaus Canada Inc.
|
| Pricing date: | Feb. 3
|
| Settlement date: | Feb. 15
|
| Stock symbol: | Toronto: MEL
|
| Stock price: | C$3.66 at close Feb. 2
|
| Market capitalization: | C$303.88 million
|
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