By Devika Patel
Knoxville, Tenn., Aug. 11 - Reece Energy Exploration Corp. priced a downsized C$12 million private placement of stock.
The deal was announced July 17 as a C$20 million offering with a C$3 million greenshoe, but the company reduced the size at pricing based on an anticipated C$12 million increase to Reece's credit facility with the Alberta Treasury Branch.
The company will sell its common shares at C$3.10 apiece.
The financing, which Reece said is oversubscribed, is being completed by a syndicate of agents led by Wolverton Securities Ltd. and including Evergreen Capital Partners Inc. and CIBC World Markets Inc.
Settlement is expected Aug. 22.
Reece said in its initial press release announcing this deal that it has increased its capital budget for 2008 by an additional C$30 million. This increase is in addition to the C$15 million increase announced in May, bringing the total capital budget for 2008 to C$66 million. Proceeds of the financing will be used to fund partially this increase in the company's capital expenditures.
Reece is an oil and gas company headquartered in Medicine Hat, Alta.
| Issuer: | Reece Energy Exploration Corp.
|
| Issue: | Common shares
|
| Amount: | C$12 million
|
| Price: | C$3.10
|
| Warrants: | No
|
| Agent: | Wolverton Securities Ltd. (lead), Evergreen Capital Partners Inc., CIBC World Markets Inc.
|
| Announcement date: | July 17
|
| Pricing date: | Aug. 11
|
| Settlement date: | Aug. 22
|
| Stock symbol: | TSX Venture: RXR
|
| Stock price: | C$3.20 at close Aug. 8
|
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