Calgary (pcJ News Briefs) – Razor Energy Corp. (TSX-V: RZE) has entered into an agreement to acquire strategic assets in west central Alberta for cash consideration of $9.6 million.
The assets, situated within Razor’s core area, are characterized by low decline, light oil focused production, which is primarily operated with abundant infrastructure to complement Razor’s existing asset portfolio.
Canaccord Genuity Corp. acted as financial advisor and Eight Capital acted as strategic advisor on the acquisition.
The acquisition will be funded with Razor’s cash reserves and through proceeds of the prospectus offering.
Razor Energy has filed and obtained a receipt for a preliminary short form prospectus in connection with an offering of up to 5,000,000 subscription receipts, co-led by Haywood Securities Inc. and Jett Capital Advisors, LLC, at a price of $3.00 per subscription receipt for gross proceeds of up to $15,000,000.
Concurrent with the prospectus offering, Razor is proposing to complete a private placement of up to 923,077 CDE flow-through common shares issued at a price of $3.25 per CDE FT share for gross proceeds of up to $3,000,000.
Razor Energy, formerly Vector Resources Inc., completed a qualifying transaction with Razor Resources. As part of the transaction, Alberta Investment Management Corporation (AIMCo) provided a non-revolving term loan facility for a principal amount of $30 million. A portion of the Term Loan Facility was used to fund Swan Hills acquisition. As part of term loan financing, Razor Energy issued common shares to AIMCo, representing approximately 10.05% of the common shares.