By Sheri Kasprzak
New York, April 6 - Orleans Energy Ltd. said it has priced a C$38,065,000 private placement as part of its plans to acquire two private oil and gas companies.
The offering includes up to 5.6 million subscription receipts at C$5.90 each and 670,000 flow-through shares at C$7.50 each.
The receipts are priced at a 4% discount to the company's C$6.15 closing stock price on April 5 and the flow-through shares at a 21.9% premium to the same closing stock price.
Each receipt will be exchanged for one common share once the acquisitions are completed.
If the acquisitions are not completed by June 15, the holders of the receipts will have their investment returned.
The deal is being placed through a syndicate of underwriters led by Peters & Co. Ltd. and including GMP Securities Ltd., Tristone Capital Inc., Dundee Securities Corp. and National Bank Financial Inc.
Proceeds from the receipts will be used for the acquisitions, and proceeds from the flow-through shares will be used for exploration expenses on the company's Canadian properties.
The offering is scheduled to close April 28.
The acquisitions are expected to cost C$88.8 million, including the assumption of C$15 million in debt.
The acquisitions are scheduled to close May 31.
Calgary, Alta.-based Orleans Energy is an oil and natural gas exploration company.
| Issuer: | Orleans Energy Ltd.
|
| Issue: | Flow-through shares and subscription receipts exchangeable for one common share each
|
| Amount: | C$38,065,000
|
| Underwriters: | Peters & Co. Ltd. (lead), GMP Securities Ltd., Tristone Capital Inc., Dundee Securities Corp., National Bank Financial Inc.
|
| Pricing date: | April 6
|
| Settlement date: | April 28
|
| Stock symbol: | TSX Venture: OEX
|
| Stock price: | C$6.15 at close April 5
|
|
|
| Subscription receipts
|
| Receipts: | 5.6 million
|
| Price: | C$5.90
|
| Warrants: | No
|
|
|
| Flow-through shares
|
| Shares: | 670,000
|
| Price: | C$7.50
|
| Warrants: | No
|
|
|
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