By Sheri Kasprzak
Atlanta, Jan. 24 - Capitol Energy Inc. will hit the private placement market with a C$50 million offering.
The deal is comprised of 90,909,091 subscription receipts at C$0.55 each. The subscription receipts allow the holder to buy one share upon the closing of the company's acquisition of all the issued and outstanding shares of a private Alberta-based oil and gas company.
The offering is being conducted through a syndicate of underwriters led by Sprott Securities Inc. and including Peters & Co. Ltd., Tristone Capital Inc., FirstEnergy Capital Corp., GMP Securities Ltd. and Scotia Capital Inc.
The proceeds from the offering will be used to acquire the shares from the private company. That transaction is expected to cost C$46.4 million.
If the transaction is not completed by March 31, Capitol must repurchase the subscription receipts from the holders for a refund of the proceeds.
The private placement is scheduled to close Feb. 16.
Based in Calgary, Alta., Capitol is an oil and gas company. The proceeds from the private placement not used for the acquisition will be used for working capital.
| Issuer: | Capitol Energy Inc.
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| Issue: | Subscription receipts (for one share each)
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| Amount: | C$50 million
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| Shares: | 90,909,091
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| Price: | C$0.55
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| Warrants: | No
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| Underwriters: | Sprott Securities Inc. (lead); Peters & Co. Ltd.; Tristone Capital Inc.; FirstEnergy Capital Corp.; GMP Securities Ltd. and Scotia Capital Inc.
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| Pricing date: | Jan. 24
|
| Settlement date: | Feb. 16
|
| Stock price: | C$0.80 at close Jan. 21
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