Calgary (pcJ News Briefs) – Blackbird Energy Inc. (TSX-V: BBI) has completed closed its previously announced marketed public offering, by way of short form prospectus, of 112,456,000 common shares at $0.55 per share, 29,643,750 CEE flow-through shares at $0.64 per CEE Flow-Through share and 6,800,000 CDE Flow-Through shares at $0.59 per CDE Flow-Through share, for aggregate gross proceeds of $84,834,800, which includes 2,456,000 common shares and 3,862,500 CEE Flow-Through shares issued pursuant to the partial exercise of the over-allotment option by the agents.
The offering was conducted through a syndicate of agents co-led by Cormark Securities Inc., Pareto Securities AS and TD Securities Inc. and also including BMO Capital Markets, Scotia Capital Inc., Haywood Securities Inc., Laurentian Bank Securities Inc., Raymond James Ltd. and Jett Capital Advisors, LLC.
The agents received a cash fee equal to 4.5% of the gross proceeds of the Offering.
Net proceeds will be used to fund the drilling and completion operations of approximately 12 Elmworth/Pipestone Montney wells and to incur related tie-in, equipping and pipeline gathering system costs, as well as for general corporate purposes, with the net proceeds from the sale of the CEE Flow-Through Shares used to incur Canadian exploration expenses for the purposes of the Income Tax Act (Canada) after the closing date of the Offering and prior to December 31, 2018 and the net proceeds from the sale of the CDE Flow-Through Shares used to incur Canadian development expenses for the purposes of the Income Tax Act (Canada) after the date of closing and prior to December 31, 2017.
Blackbird Energy will renounce the Canadian exploration expenses and the Canadian development expenses to subscribers of CEE Flow-Through Shares and CDE Flow-Through Shares, respectively, for the year ended December 31, 2017.
Blackbird Energy Inc. is a highly innovative oil and gas exploration and development company focused on the condensate and liquids-rich Montney fairway at Elmworth, near Grande Prairie, Alberta.