Calgary (pcJ News Briefs) – Epsilon Energy Ltd. (TSX: EPS) completed its previously announced rights offering. The offering was over-subscribed and at closing, Epsilon issued 9,167,617 common shares at $2.68 per share for gross proceeds of $24,569,214.
JVL Advisors, LLC, a limited liability company owned and controlled by John Lovoi, Epsilon’s Chairman, acted as stand-by guarantor of the Rights Offering, having agreed to purchase from Epsilon all of the 9,167,617 Common Shares not otherwise subscribed for under the offering. As the rights offering was over-subscribed, JVL was not required to fulfill its obligations under the Backstop Commitment. JVL did exercise its basic subscription privilege and additional subscription privilege under the offering.
The funds raised in the rights offering will be held by Epsilon as a reserve for future capital expenditures, which will provide the company with funds to finance the growth of its business and allow it to be able to react and respond to changing market conditions and potential acquisition opportunities.
Epsilon Energy Ltd. is a North American natural gas development, production and midstream company with a current focus on the Marcellus Shale of Pennsylvania.
photo credit: Epsilon Energy