Brokered deal also has C$1.5 million greenshoe; proceeds reduce debt
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Feb. 18 - Palliser Oil & Gas Corp. said it has priced a private placement of special warrants, which will be convertible into common stock. The deal is for C$10 million and has a C$1.5 million greenshoe.
The company will sell 5,264,000 special warrants at C$1.90 apiece, a 5% discount to the Feb. 17 closing share price of C$2.00.
The sale will be conducted on a bought-deal basis by a syndicate of underwriters led by Dundee Securities Ltd. and including Casimir Capital Ltd., Jennings Capital Inc., Wellington West Capital Markets Inc., Acumen Capital Finance Partners Ltd. and P.I. Financial Corp.
The financing will "give us more flexibility going forward," Ivan J. Condic, chief financial officer, said in an interview with Prospect News.
Settlement is expected March 15.
Proceeds will be used to reduce bank debt, fund the company's capital program and for general corporate purposes.
Palliser is a Calgary, Alta.-based emerging junior oil and gas company.
| Issuer: | Palliser Oil & Gas Corp.
|
| Issue: | Special warrants convertible into common shares
|
| Amount: | C$10,001,600
|
| Greenshoe: | C$1,500,240
|
| Special warrants: | 5,264,000
|
| Price: | C$1.90
|
| Warrants: | No
|
| Underwriters: | Dundee Securities Ltd. (lead), Casimir Capital Ltd., Jennings Capital Inc., Wellington West Capital Markets Inc., Acumen Capital Finance Partners Ltd. and P.I. Financial Corp.
|
| Pricing date: | Feb. 18
|
| Settlement date: | March 15
|
| Stock symbol: | TSX Venture: PXL
|
| Stock price: | C$2.00 at close Feb. 17
|
| Market capitalization: | C$65.99 million
|
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