By Devika Patel
Knoxville, Tenn., Oct. 13 - Open Range Energy Corp. said it increased a private placement of flow-through warrants and subscription receipts to C$65.01 million from C$60 million. The deal priced Tuesday and was increased shortly after pricing.
The company will sell 31.35 million subscription receipts at C$1.85 per receipt and 3.05 million special warrants for flow-through common shares at C$2.30 per warrant.
Each subscription receipt will be exchangeable for one common share upon the closing of the company's planned acquisition of the Ansell/Sundance property in west central Alberta. If this doesn't happen by Dec. 18, the escrowed proceeds of the deal, with accrued interest, will be returned to the investors.
Each flow-through warrant is exercisable for one flow-through common share upon the earlier of the date the acquisition closes and Dec. 29. The price per warrant will be reduced to $2.09 if the acquisition doesn't close by Dec. 29.
The bought-deal financing was arranged with a syndicate of underwriters led by Cormark Securities Inc. FirstEnergy Capital Corp., National Bank Financial Inc., Canaccord Capital Corp., Raymond James Ltd., Dundee Securities Corp. and GMP Securities Ltd.
Settlement is expected Nov. 3.
Proceeds will be used to acquire the position of a working-interest partner in the company-operated Ansell/Sundance property and for exploration.
Based in Calgary, Alta., Open Range Energy is an oil and natural gas exploration company.
| Issuer: | Open Range Energy Corp.
|
| Issue: | Subscription receipts, flow-through common share warrants
|
| Amount: | C$65,012,500
|
| Agents: | Cormark Securities Inc. (lead), FirstEnergy Capital Corp., National Bank Financial Inc., Canaccord Capital Corp., Raymond James Ltd., Dundee Securities Corp. and GMP Securities Ltd.
|
| Pricing date: | Oct. 13
|
| Settlement date: | Nov. 3
|
| Stock symbol: | Toronto: ONR
|
| Stock price: | C$2.13 at close Oct. 13
|
| Market capitalization: | C$56.5 million
|
|
|
| Receipts
|
| Amount: | C$57,997,500
|
| Receipts: | 31.35 million
|
| Price: | C$1.85
|
|
|
| Warrants
|
| Amount: | C$7,015,000
|
| Warrants: | 3.05 million
|
| Price: | C$2.30
|
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