By Sheri Kasprzak
New York, Oct. 26 - Mission Oil & Gas Inc. said it has priced a C$94.27 million private placement of subscription receipts and flow-through shares.
The offering includes 11.3 million receipts at C$7.90 each and 500,000 flow-through shares at C$10.00 each.
A syndicate of underwriters led by Orion Securities Inc. and CIBC World Markets Inc., and including Tristone Capital Inc., BMO Nesibtt Burns Inc., FirstEnergy Capital Corp. and Haywood Securities Inc., will place the offering.
The deal is expected to close Nov. 16.
The receipts are exchangeable on a one-for-one basis for common shares once the company completes its acquisition of Bison Resources Ltd.
If closing of the acquisition does not take place before Jan. 30, 2006, holders of the receipts will receive the full subscription price plus interest.
Separately, Mission has received an extension to an existing credit facility to C$24 million from C$12.5 million from a Canadian chartered bank. Mission said in a statement that it anticipates the credit facility will be expanded further to C$44 million to C$46 million after the acquisition is completed.
Proceeds from the private placement and the extended credit facility will be used for capital growth on the Bakken property and for ongoing exploration at the Peace River Arch property.
Under the terms of the Bison acquisition, Mission plans to purchase all Bison shares at C$8.65 each. A total of 4,270,105 Mission shares will be issued to Bison shareholders.
Based in Calgary, Alta., Mission is an oil and natural gas exploration company.
Issuer: | Mission Oil & Gas Inc.
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Issue: | Subscription receipts and flow-through shares
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Amount: | C$94.27 million
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Underwriters: | Orion Securities Inc. (co-lead), CIBC World Markets Inc. (co-lead); Tristone Capital Inc., BMO Nesbitt Burns Inc., FirstEnergy Capital Corp., Haywood Securities Inc.
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Pricing date: | Oct. 26
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Settlement date: | Nov. 16
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Stock price: | C$8.48 at close Oct. 26
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Subscription receipts
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Receipts: | 11.3 million
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Price: | C$7.90
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Warrants: | No
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Flow-through shares
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Shares: | 500,000
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Price: | C$10.00
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Warrants: | No
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