Blackbird Energy (BBI-V) Oct 21, '14 has completed the previously announced bought-deal private placement of 86,207,000 special warrants and 15.9 million common shares to be issued on a flow-through basis in respect of Canadian exploration expenses at a price of 29 cents per special warrant and 34 cents per flow-through share for total gross proceeds of approximately $30.4-million.
Garth Braun, Blackbird's CEO commented: "With the completion of these financings Blackbird now has the team, the assets and the financing in place to begin proving up its resource rich land base by drilling its first two Montney wells at Elmworth while maintaining balance sheet flexibility to pursue and execute incremental strategic acquisitions. We are also very pleased to welcome significant new long term shareholders, including a new board member, and look forward to delivering significant value creation to our new and existing investors."
National Bank Financial Inc. as lead underwriter, together with Raymond James Ltd., Haywood Securities Inc., TD Securities Inc., Cormark Securities Inc. and Jennings Capital Inc. (collectively the "Underwriters"), acted as the underwriters with respect to the Financings. In connection with the Financing, the Underwriters received a cash commission equal to 5.0% of the gross proceeds raised under the Financing, other than for certain investors on a 'President's List'.
Following completion of the Financings and closing of the previously announced non-brokered financing of approximately $7 million, Blackbird has approximately $44 million of cash and net working capital. Blackbird intends to use the net proceeds from the Financings along with its current net working capital balance to fund ongoing exploration and development of its core Montney lands at Wapiti, potential strategic acquisitions and for general and corporate purposes.
In connection with the Financings, the Company has agreed to prepare and file a prospectus (the "Qualification Prospectus") and all other necessary documents in order to qualify the Common Shares issuable upon conversion of the Special Warrants to subscribers resident in Canada, or otherwise subject to Canadian securities laws. The Company has agreed to use commercially reasonable best efforts to obtain a receipt for the Qualification Prospectus within 60 days of the closing date of the Financings.
In accordance with applicable securities laws, the Special Warrants and Flow-Through Shares are subject to a four month and one day hold period, expiring on February 22, 2015 unless a receipt for the Qualification Prospectus is obtained prior to such date.
Scott Koyich President |
