Non-brokered deal offers 81,865,425 common shares at C$1.05 per share
By Devika Patel
Knoxville, Tenn., Oct. 9 – Ithaca Energy Inc. said it will raise C$85.96 million in a non-brokered private placement of stock with DKL Investments Ltd.
The company will sell 81,865,425 common shares at C$1.05 apiece, a 19.32% premium to the Oct. 8 closing share price of C$0.88. The purchase price is also a 39% premium to the five-day volume weighted average price and a 51% premium to the 30-day volume weighted average price, the company noted in a press release.
Settlement is expected Oct. 16.
Proceeds will be used to strengthen the balance sheet, reduce bank debt and provide flexibility to pursue value-accretive satellite opportunities in the Greater Stella Area.
Calgary, Alta.-based Ithaca Energy is an oil and natural gas exploration and development company.
| Issuer: | Ithaca Energy Inc.
|
| Issue: | Common stock
|
| Amount: | C$85,958,696
|
| Shares: | 81,865,425
|
| Price: | C$1.05
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | DKL Investments Ltd.
|
| Pricing date: | Oct. 9
|
| Settlement date: | Oct. 16
|
| Stock symbol: | Toronto: IAE
|
| Stock price: | C$0.88 at close Oct. 8
|
| Market capitalization: | C$322.93 million
|
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